ZOMATO changed its name to Zomato limited ahead of its IPO

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On April 15, 2021, The food-tech company Zomato declared itself as a public company that will now offer IPO (Initial Public Offer). The officials of Zomato were in talks about when they shared the news of changing the memorandum.
“The company was originally incorporated as a private limited company on January 18, 2010, and the company wishes to convert itself into a public company. The members were now informed that the company is considering the filing of a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and relevant stock exchange(s) and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company is required to be converted into a public limited company,” the company said in the filings made earlier this month.
The Gurgaon-based food-tech company has plans to launch an IPO in the first half of this year, founder and CEO Deepinder Goyal had said last year in an internal mail to employees. Media reports peg the size of the IPO at anywhere between $650 million to $1 billion.
The company has been on a fundraising spree, garnering about $910 million from a clutch of investors through 2020 and early 2021. The firm’s valuation currently stands at $5.4 billion.
Food delivery business grew manifold amid the pandemic as home-bound consumers took to online ordering of food. Zomato claims to have clocked nearly 60% higher GMV (gross merchandise value) on New Year’s Eve 2020 over last year. To put this in perspective, it translates into a GMV of Rs 75 crore in a single day.
“The company is considering filings of the draft red herring prospectus with the Securities and Exchange Board of India and relevant stock exchange(s) and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company is required to be converted into a public limited company,” reads an excerpt of the filings.
“The organization is thinking about filings of the draft distraction outline with the Securities and Exchange Board of India and significant stock exchange(s) and posting of the value shares on at least one of the stock trades. To embrace something similar, the organization is needed to be changed over into a restricted public organization,” peruses a selection of the filings.
According to the Companies Act 2013, only public limited companies can list with any stock trade; thus, Zomato has changed itself to satisfy the legitimate models before posting.

Aside from the name change, the organization likewise designated 44,30,60,73,250 value offers to the entirety of its inclination endless supply of the CCPS (Compulsorily convertible inclination shares) held by them. This incorporates all financial backers, advertisers, ESOPs trust, etc.
Independently, Zomato has passed another extraordinary goal to give 247,60,30,788 value shares as different offers to existing investors in a proportion of 6699:1. The organization has capitalized Rs 235.4 crore from its security premium record to work with this allocation.
The designation has been made to 17 investors with InfoEdge, Fidelity Group, Deepinder Goyal, Pankaj Chaddah, ESOP Trust and Temasek as large recipients.
Experts say these moves are in accordance with Zomato’s arrangement to list in half a month from now. As per three Entrackr sources, Zomato has concluded brokers for its IPO and plans to document a draft distraction outline or DRHP one week from now.
“Kotak Mahindra Bank, Morgan Stanley, Citi Bank, Credit Suisse and Bank of America have been concluded as financiers for the IPO, and more banks could be added,” said one of the sources
(not mentioning names as the data is private).
Zomato has declined to bring to the table remark for the story while inquiries shipped off Kotak Mahindra Bank, Morgan Stanley, Citi Bank, Credit Suisse, and Bank of America didn’t get any quick reaction.
Zomato would be the primary super IPO from the Indian startup biological system this year. As per media reports, the organization is peering toward raising $1 billion at a $6-8 billion valuation.
Significantly, the organization had said that lone essential capital would be raised through the public posting. In any case, Entrackr’s sources stressed that one financial backer would likewise offer Zomato’s offers in the contribution.
Since a year ago, the organization has cleaned up near $910 million from Tiger Global, Kora, Fidelity, and a few others across a few tranches of its Series J round.

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