Zomato has raised Rs 4,196 Cr from anchor financial backers ahead of its IPO

Online food conveyance platform Zomato said it has raised Rs 4,196 crore from marquee anchor financial backers as a part of its anchor book allocation, a day prior to the kickoff of its public offering.

In a recording with the National Stock Exchange on Tuesday, the company said it has finalized the allocation of 55,21,73,505 value shares to a total of 186 anchor financial backers including any semblance of Tiger Global, Goldman Sachs, Blackrock Global Investments, JP Morgan Funds, T Rowe Price, Steadview Capital and Baillie Gifford, among others.

Other global financial backers, for example, the government of Singapore, Canada Pension Plan Investment Board, Fidelity, Pinebridge Global Funds, Aberdeen Global Indian Equity, Neuberger Berman and Abu Dhabi Investment Authority also participated.

Amongst domestic financial backers, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance, Aditya Birla Sun Life, ICICI Prudential, and Nippon Life India, among others, put resources into the company via the anchor book. A total of 184,104,960 shares were allocated to 19 domestic mutual assets through a total of 74 schemes.

These anchor financial backers have bought in to Zomato’s value shares at a cost of Rs 76 for every value share.

Zomato’s offer will open for membership on July 14 and the value band for the issue has been fixed at Rs 72-76 for every value share. The total issue size is Rs 9,375 crore.

In its red herring plan, the company had said it will utilize Rs 6,750 crore from the new continues for financing organic and inorganic development and the rest for general corporate purposes.

According to the RHP, Zomato’s food conveyance business suffered significantly because of the COVID-19 pandemic and the total number of requests placed on its platform in India decreased by 40.7% from 403.1 million in FY20 to 238.9 million in FY21.

Thus, assortments suffered and income from operations dropped by 24% to Rs 1,994 crore in FY21 from Rs 2,605 crore in FY20. During the fiscal finished in March 2021, the Gurugram-based company made 86% of its operating income from food conveyance administrations which remained at Rs 1,715 crore.