Zomato Share Price: The Swiggy-rival announced on Friday that it has raised Rs 8,500 crore by selling equity shares to qualified institutional investors. The fundraise is largely aimed at fueling the company's future growth trajectory.
Earlier, CEO Deepinder Goyal also mentioned that the move would strengthen its balance sheet. The QIP (Qualified Institutional Placement) issue opened on November 25. On Friday, Zomato's shares concluded at Rs 279.40 price level, down by 2.35 per cent on the National Stock Exchange.
The company mentioned in its exchange filing that the committee approved the allotment of 33,64,73,755 equity shares. The face value for each of them was Rs 1 each.
First Major Fundraise Since Listing
Major investing institutions who participated in the QIP includes ICICI Prudential India Opportunities Fund, HDFC Large And Mid Cap Fund, Kotak Equity Hybrid, Motilal Oswal Midcap Fund, Motilal Oswal Small Cap Fund and others. The company further mentioned in the exchange filing that in line with the regulation by SEBI, the price is 5 per cent lower than the floor price of Rs 265.91 per share.
When Zomato opened its QIP, the company highlighted that Rs 2,137 crore would be used to set up and run operations of warehouses and dark stores. Further, Rs 2,492 crore will be used by the company for advertising, marketing, and branding initiatives.
Meanwhile, Zomato CEO Deepinder Goyal decided to waive off his salary till 2026 as per the QIP document. “Vide letters dated March 24, 2021 and April 1, 2024, addressed to our Board, Deepinder Goyal has voluntarily waived his salary for a period starting from April 1, 2021 till March 31, 2026 and shall continue to discharge his roles and duties as managing director and chief executive officer during this period," the official document read.
Zomato’s QIP happened at a time when the quick commerce segment is booming in India. Quick commerce platform Zepto also recently completed its third fundraise in six months where it raised $350 million.
