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Info Edge to sell stake worth Rs 750 cr in Zomato IPO; Foodtech unicorn files DRHP

Info Edge to sell stake worth Rs 750 cr in Zomato IPO; Foodtech unicorn files DRHP
Photo Credit: VCCircle
28 Apr, 2021

BSE-listed internet company Info Edge will sell shares worth Rs 750 crore in the upcoming initial public offering (IPO) of food delivery unicorn Zomato, it said in a regulatory filing on Tuesday.  

Separately, on Wednesday, Zomato filed its draft red herring prospectus (DRHP) with markets regulator SEBI for a Rs 8,250 crore offering.   

In its filing, Info Edge, an early investor and the largest shareholder in the foodtech company, said the terms and conditions of the sale will be specified in the DRHP and other documents and agreements related to the listing. Zomato’s proposed IPO, it said, comprises of fresh issue of equity shares by the company and an offer for sale by Info Edge.  

“The Board of Directors of the Company (Info Edge) today considered and have given their approval to the Company to participate in the said Offer for Sale of up to such number of shares of Zomato Limited as would aggregate upto Rs 7,500 million (Rs 750 crore),” the filing said.  

Read: Zomato IPO: Taking a leaf out of Amazon’s optics playbook  
  
In an internal email in September, Zomato CEO Deepinder Goyal informed employees that the company was working on its IPO. Since then, it went on to raise over $1 billion from a consortium of global marquee investors. Its valuation now stands at $5.4 billion.   

Sanjeev Bikhchandani-founded Info Edge first invested about Rs 5 crore in the company in August 2010 and subsequently took part in several follow-on rounds to hold shares worth over Rs 7,000 crore in the company today.    

The Noida headquartered internet company operates recruitment solutions business including jobs portal Naukri.com, real estate business 99acres.com, matrimony services provider jeevansathi.com and education related services under Shiksha.com.