Zomato Gets Shareholder Nod to Raise ₹8,500 Crore via QIP

25 Nov 2024 , 12:22 PM

Zomato Ltd has received approval from its shareholders to raise capital through a Qualified Institutions Placement (QIP). The approval was granted via special resolution passed through postal ballot with remote e-voting.

Last month, the board had approved the plan to raise up to ₹8,500 Crore through this QIP to strengthen company’s balance sheet. Zomato said its cash balance shrunk by ₹1,726 Crore mainly due to the ₹2,014 Crore deal to acquire Paytm’s entertainment ticketing business.

Cash balances of the company have declined from ₹14,400 Crore to ₹10,800 Crore mainly on account of financing past losses in the quick commerce and investments in acquisitions. It is for the first time since its IPO that Zomato’s business has started giving cash.

Zomato clarified that its quick commerce business is near adjusted EBITDA break-even while its food delivery margins remain flat. Zomato’s current foreign holding stands at 50.48% with FDI at 5.25% and FII derived from the balance percentage.