Zepto Files Updated DHRP For Nearly Rs 10k Crore IPO; Plans July Debut

Zepto IPO: The new age platform Zepto has confidentially filed its updated prospectus with the Securities and Exchange Board of India (Sebi), India's market regulator. 

The highly-anticipated nearly Rs 10,000 crore IPO is expected to have a July listing, making it the first pure play quick commerce firm to list in India, joining the league of Swiggy and Eternal. 

The proposed initial public offering (IPO) comprises of a fresh issue of equity shares worth Rs 8,010 crore and an offer for sale (OFS) of shares by existing investors, as per the updated draft red herring prospectus (UDRHP) filed on June 8. 

The OFS component includes up to 1,13,466,566 equity shares of face value Rs 5 each. 

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The Aadit Palicha led firm is likely to invest in its subsidiary, Zepto Marketplace Private Limited, for marketing and business promotion expenses to improve brand awareness and visibility (Rs 520 crore).

The investors offloading shares include Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust. 

Meanwhile, Nexus Ventures VII Holdings currently holds 4.55 per cent stake and Nexus Ventures VI Holdings holds 8.57% stake in the company. Contrary ZEP Holdings holds 1.13% and Razor Ventures Zepto holds a 1.14% stake. 
 
The company will use the fresh issue proceeds to bolster its growth and expansion plans. It plans to invest in the expansion of its dark store network through the setting up of new dark stores in existing and new geographies (Rs 1,628.9 crore), lease rentals for existing dark stores (Rs 1,734.9 crore), and technology and cloud infrastructure (Rs 1,324.7 crore).

Further, without mentioning the amount, it said it would fund inorganic growth through acquisitions and general corporate purposes.
 
The Bengaluru-headquartered company had filed its draft papers in December last year through the confidential route, which allowed it to withhold public disclosure of IPO details initially. It received the market regulator's approval in May this year.
 
Morgan Stanley India Company, Goldman Sachs (India) Securities, Motilal Oswal Investment Advisors, JM Financial,  Axis Capital, IIFL Capital Services, and HSBC Securities and Capital Markets (India), have been roped in by the company to manage the public offering.