Zomato raises USD 1 bn via QIP; Motilal Oswal, ICICI Prudential among big domestic investors

By The Capital

On 29 Nov 2024 16:23:12

Zomato raises USD 1 bn via QIP; Motilal Oswal, ICICI Prudential among big domestic investors

Food delivery aggregator Zomato has raised Rs 8,500 crore by selling equity shares to qualified institutional investors, mainly domestic mutual fund houses, to fund its expansion and growth plans.

Zomato, which also owns quick-commerce firm Blinkit, had launched its Qualified Institutional Placement (QIP) issue on November 25, which closed on Thursday.

In a regulatory filing on Friday, Zomato informed that it has raised Rs 8,500 crore through a Qualified Institutional Placement (QIP) issue. This is the first major fundraise since the company got listed on the stock exchanges in July 2021.

The Fund Raising Committee of Zomato's board approved the allotment of 33,64,73,755 (33.65 crore) shares to eligible qualified institutional buyers at an issue price of Rs 252.62 apiece, aggregating to Rs 8,500 crore.

These shares were allotted to investors at 5 per cent discount from the floor price, which was fixed at Rs 265.91 per share.

Four domestic mutual fund houses -- ICICI Prudential, Motilal Oswal, HDFC and Kotak -- were allotted over 5 per cent of the equity shares offered in the QIP issue.

Motilal Oswal emerged as the biggest participant picking up 21 per cent share of the allocation by investing around Rs 1,750 crore.

Recently, Zomato CEO Deepinder Goyal had said that the proposed fundraise is meant to strengthen its balance sheet.

The funds raised through the QIP issue will be used for growth and expansion plans of Zomato as well as its quick commerce business Blinkit.

Zomato has four businesses at present including food delivery, quick-commerce (Blinkit), business-to-business (B2B) supply arm Hyperpure and District, a platform for users to book dining, movies, live performances, sports events, shopping, and staycations.

As per the latest shareholding pattern, public shareholding stood at 98.73 per cent in Zomato. The company's Founder and CEO Deepinder Goyal holds 4.18 per cent as he is listed among public shareholders.

Zomato has a market cap of nearly Rs 2.47 lakh crore. The company's shares closed at Rs 279.50 apiece on Friday, down 2.31 per cent from their previous close on the BSE.