Zomato is planning to raise capital of Rs 8,250 crore through an IPO. It is the first consumer-based Internet startup in the country, which is preparing for listing. In this IPO, a fresh equity share of Rs 7,500 crore will be offered by Zomato.
Mumbai. The IPO of the food delivery app Zomato coming in the Indian stock market is under a cloud of crisis. The Securities and Exchange Board of India (SEBI) is reviewing the IPO draft of Zomato. SEBI is investigating who has control of Jomato and what is its nature.
Ant Group of Chinese billionaire businessman Jack Ma holds a 23 per cent stake in it. Also, it is being seen that after the list of shares, how much bonus shares or rights issue will be issued to ANT Group. Regarding China, whether it will need approval under the revised Foreign Direct Investment (FDI) rule. SEBI is watching whether Zomato has control of Chinese company
According to sources, SEBI is looking at whether the control of Zomate is not in the hands of Chinese investors. Due to foreign investment, it is being seen whether it needs permission under Press Note 3 of the current system or not. Jomato was contacted about this but declined to comment. This is being considered keeping in mind the government’s measures to curb FDI investment from neighboring countries in Indian companies. In fact, this rule has been enacted to prevent the acquisition of companies by taking advantage of the opportunity to reduce the valuation of local companies during the Corona epidemic.
After Corona, the investment of 7 neighboring countries is first evaluated.
Although there is no fixed limit, Chinese companies can still buy up to 10 per cent stake in listed companies in India. But according to last year’s press note, such investment from seven countries including China will be evaluated by the government first. FDI is regulated by the Ministry of Commerce, while foreign portfolio investment is regulated by SEBI. Read this also. Important news for those who get bank FD, fixed deposit is a plan, otherwise know
Jack Ma’s Ant Group is the second largest investor in
Jomato since 2008, Antom Financial is an investor in Jomato. It is the second largest investor in Zomato. It has an investment of about Rs 3,243 crore in the company. In 2018, it bought a 14.7 per cent stake in Zomato. Later its stake increased to 23 percent. In January 2020, Zomato raised $ 150 million from ANT, but the change of rules forced the Alibaba Group to see again when to make additional investment in the company.
Zomato plans to raise capital of Rs 8,250 crore through an IPO. It is the first consumer-based Internet startup in the country, which is preparing for listing. In this IPO, a fresh equity share of Rs 7,500 crore will be offered by Zomato. At the same time, there will be a sales offer of Rs 750 crore from Info Edge (India) Limited. The company said that the proceeds from the sale of fresh shares will be used for expansion plans, including acquisitions.
