New Delhi: Food delivery giant Zomato gave its nod for Rs 8,500 crore Qualified Institutional Placement (QIP) with a floor price of Rs 265.91 apiece on Tuesday in a fundraising plan that is meant to shore up the tech-led company’s balance sheet. The fundraising committee of Zomato’s board gave the nod for the QIP., it said in an exchange filing.
The company may offer a discount capped at 5 per cent on the floor price, it said in the statement. Zomato will decide the issue price in consultation with its book-running lead manager. Zomato’s shares closed 2.52 per cent higher at Rs 280.21 piece on Tuesday, according to exchange data. A QIP involves less paperwork and allows a company direct access to funding from market participants.
Zomato share price history
Zomato’s share price was up 3.26 per cent in the past 5 days. It rose over 10 per cent in the past month. Over the past 6 months, Zomato’s share price rose 52.58 per cent. In the past year, Zomato’s share price jumped 146.23 per cent, according to NSE data.
Zomato Q2 earnings
Zomato reported a 388.89 per cent jump in Q2 net profit to Rs 176 crore, while the quarterly revenue was up 68.5 per cent to Rs 48,000 crore year-on-year. The company’s net profit margin stood at 3.67 per cent, according to official data. JP Morgan gave a BUY call on Zomato with a target price of Rs 340 per share.
The US brokerage was bullish on Zomato’s quick commerce offering Blinkit. The company also announced the launch of its event booking offering District. The comoany also introduced a feature to curb food wastage owing to cancelled orders called Food Rescue which allows users to clinch these orders at a lower price.
Ahead of the festive season in October, Zomato hiked the platform fee on food delivery to Rs 10 per order from Rs 6 per order. The platform fee has been a major boost to the company’s earnings by ensuring fixed earnings on orders.
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Food aggregator Zomato has announced a Rs 8,500 crore QIP to raise funds in order to strengthen its balance sheet, it said in an exchange filing. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
