BUSINESS

Info Edge Cuts Offer for Sale Size by Half to Rs 375 Crore

Info Edge is one of the most significant stakeholders of the food delivery app Zomato. It reduces its offer for sale (OFS) size in Zomato’s IPO to Rs 375 crore, half from Rs 750 crore as planned earlier.

”The revised OFS by the company would comprise of such number of equity shares held by the company in Zomato, as would aggregate up to Rs 3,750 million, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed about the offer, and in other Offer related documents and agreements,” the company said in an exchange filing on 4 July.

The Securities and Exchange Board of India (SEBI) has given its nod to the delivery platform Zomato Ltd to raise funds via an initial public offering (IPO), a person aware of the development told mint. The much-anticipated IPO of the food-tech unicorn is expected to hit the market later in July.

Zomato had filed its draft red herring prospectus (DRHP) with the market regulator SEBI in April, proposing an IPO of Rs 8,250 crore. The company will issue fresh equity shares worth Rs 7,500 crore along with the company’s early backer Info Edge India Ltd selling its stake worth Rs 750 crore in Zomato’s upcoming public offering, it said.

The company plans to use Rs 5,625 crore of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives. Shares of Info Edge surged 3 per cent to Rs 5,543.6 per share on the BSE in Monday’s early deals.

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