When will Zomato launch their IPO? Company aims to raise Rs 8,250 crore in IPO funding

As the COVID-19 pandemic rages across India, a lot of retail businesses have been suffering. However, online services such as Swiggy, Zomato, Amazon and Flipkart have seen major growth in revenue as more and more people adapt to the ongoing pandemic conditions and choose to order a large proportion of their goods online. Zomato, one of India's most successful food delivery companies, has applied for an Initial Public Offering. Read on to know when Zomato will launch its IPO. 

When will Zomato launch its IPO?

Food delivery Zomato has filed its Draft Red Herring Prospectus (DRHP) with the market regular SEBI today, as reported by Moneycontrol. According to the public DRHP filed by Zomatao. the company is offering equity shares aggregating up to Rs. 8,250 crores (around $1.1 billion). Out of this Rs. 8,250 crore, Rs. 7,500 crore worth of shares will be fresh issue shares, whereas the remaining 750 shares will be offered by an existing investor Info Edge. Info Edge had announced on April 27, 2021, that they were planning to sell Rs 750 crore worth of Zomato shares. 

As per the stock market trends, SEBI takes two weeks to review the DRHP and decides to give the go-ahead for the IPO launch while keeping the market conditions in mind. Looking at these facts, it's likely that Zomato IPO will happen sometime at the end of May or early June. Interested investors can rest easy knowing, the Zomato IPO date will be announced soon as SEBI reviews the company's DRHP. 

About Zomato 

Service sector companies involved in online deliveries have seen significant growth over the past financial year. As people were forced to stay inside their homes due to prolonged lockdowns across many parts of India, a lot of new customers started using online delivery services like Zomato to order food and other stuff. By Zomato's annual filings, the gross order value fell to Rs 1,093 crore in April - June quarter, but rose significantly to Rs 2981 crore during the October - December 2020 quarter. Zomato also improved their revenue by increasing their fees and commissions and putting a cap on the discounts. Stay tuned for more updates on Zomato IPO and the stock market. 

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