Zomato Launches ₹8,500 Crore QIP at ₹265.91 Floor Price

27 Nov 2024 , 06:15 PM

Zomato Ltd has opened its ₹8,500 Crore Qualified Institutions Placement (QIP) offer with a floor price of ₹265.91 per share. The offer price is ₹252.62 per share. A total of 33.65 crore shares, accounting for 3.8% equity, are being offered in this QIP.

The shareholders approved the QIP proposal of Zomato on 23 November 2024. Last month, the board decided to raise capital through this route. The fundraising is likely to improve the balance sheet of Zomato, said its regulatory filing.

Zomato’s cash reserves had fallen by ₹1,726 Crore in the last quarter. It had acquired Paytm’s entertainment ticketing business for ₹2,014 Crore. The equity shares issued under the QIP are in accordance with the 2018 regulations laid by SEBI and also with the Companies Act 2013.

Zomato is eligible to provide shareholders with a discount of 5% on the floor price, subject to approval. QIP proceeds will further aid Zomato in business operations and strategic objectives but detailed usage plans were not specified. This is going to make the company the first new-age tech stock to be part of the 30-stock BSE Sensex, with JSW Steel out, effective December 23, 2024.