Zomato Limited stated on Friday that it has received Rs 8,500 crore through a Qualified Institutions Placement (QIP) for equity shares. Last Monday, the foodtech company gained shareholder permission for the fundraising.
The issuance included 33,64,73,755 equity shares priced at Rs 252.62 apiece, with a premium of Rs 251.62 per share. This issuing price reflects a 5% discount to the determined floor price of Rs 265.91 per share, the business stated in its stock exchange filings. This cash investment is projected to strengthen Zomato's financial position, allowing for corporate expansion and strategic objectives, particularly in the rapid commerce market through Blinkit.
The sale, which launched on November 25 and closed on November 28, was approved by Zomato's Fund Raising Committee during its meeting earlier today. Prominent mutual funds, including ICICI Prudential and Motilal Oswal, were among the major allottees, with the latter purchasing a total of 6.92 crore shares, accounting for 20.81% of the issue size. Following the acquisition, Zomato's paid-up equity share capital increased to Rs 917.28 crore.
Zomato's operating revenue increased by 68.5% quarter on quarter during the fiscal year ending in, hitting Rs 4,799 crore in Q2 FY25 from Rs 2,848 crore in Q2 FY24. The company's net profit increased by 4.8x to Rs 176 crore in the September quarter.
According to a recent Motilal Oswal analysis, Blinkit, which is owned by Zomato, holds a 46% share of the rapid commerce market. Zepto comes in second with a 29% market share, followed by Swiggy Instamart in third with a 25% share.
Zomato's stock price rose 6.8% to Rs 282 per share at 11:30 AM on November 29, 2024, compared to the closing price last Friday (November 22). The company's market capitalization is currently around Rs 2,35,481 crore, or $28 billion, while its nearest rival, Swiggy, is trading at Rs 470 per share and has a market capitalization of Rs 90,712 crore, or USD 10.7 billion.
