New Delhi: Food aggregator Zomato is eyeing a $1 billion fundraise through qualified institutional placement (QIP). This mode of fundraising is used by companies to tap money in a quicker manner without having to submit paperwork to exchanges. Zomato is likely to have picked Morgan Stanley as an investment bank to manage the fundraise.
The food aggregator is reportedly eyeing one or two more banks for the deal the Moneycontrol reported, citing people familiar with the matter.
Zomato QIP details
The fundraise is pending shareholder approval, according to the report. It is aimed at strengthening the food aggregator’s balance sheet. The company is not eyeing any acquisitions or investments at this point. While the company’s revenue grew 4X to Rs 20,508 crore so far in Fy25 from Rs 4,640 crore pre-IPO, its cash balance has shrunk to Rs 10,800 crore from Rs 14,400 crore earlier.
While the emphasis is on service and Zomato has turned into a cash-generating business, the company is eyeing a fundraise to ensure adequate availability of capital to remain on a level playing field with rivals.
Zomato share price history
Zomato’s stock was up 9.39 per cent in the past 5 days. The food aggregator’s share price was down 3.52 per cent in the past month, but up 40.47 per cent in the past 6 months. In the past year, Zomato’s share price surged 124.29 per cent.
Congratulations @swiggy!
Couldn’t have asked for a better company to serve India with. https://t.co/ZgU5tIt1pW
— Deepinder Goyal (@deepigoyal) November 13, 2024
Zomato’s rival Swiggy also listed on the exchanges on Wednesday. Zomato shared an appreciative post on social media platform X to commemorate the occasion. Zomato founder and CEO Deepinder Goyal also took to X to congratulate Swiggy on its market listing. He said there couldn’t have been a better company for Zomato to “serve India with”.
Food aggregator Zomato is likely to launch a $1 billion qualified institutional placement in December. Know details of the fundraise. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
