Zomato Raises Rs 8,500 Crore via QIP

29 Nov 2024 , 01:51 PM

Zomato, a food and grocery delivery company, raised Rs 8,500 crore through the Qualified Institutional Placement (QIP) on Friday. The company allocated 33.65 million shares at a price of Rs 252.62 per share.

The issue price is 5% less than the Rs 265.91 floor price that the business set on Monday. Zomato intends to use the money raised mostly for marketing and advertising, as well as for growing the reach of its rapid commerce division Blinkit, according to the QIP’s preliminary placement document.

On Friday, the company’s shares were down 1.6% to Rs 281.65 per share on the BSE.

According to the business, a significant portion of the approximately Rs 2,137 crore in placement proceeds will go towards “expenditure towards setting up and running operations of dark stores and warehouses.” As Zomato seeks to improve its standing in the rapid commerce and food delivery sectors, more money will also be used for marketing and advertising.

By the end of FY25, Zepto also plans to run more than 700 dark stores, and Swiggy Instamart wants to increase the number of its dark stores from about 557 as of June 30 to 741.

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