The company had announced on November 23, 2024 that its shareholders have approved a proposal to raise capital through a Qualified Institutions Placement (QIP). Last month, its board approved raising up to ₹8,500 crore through a qualified institutions placement (QIP). The fundraising is meant to strengthen the balance sheet at this point, the company said in a filing.
Zomato said its cash balance was reduced by ₹1,726 crore, compared to the previous quarter on account of the deal consideration of ₹2,014 crore for the acquisition of Paytm’s entertainment ticketing business.
In today’s announcement, Zomato said its equity shares, with a face value of ₹1 each, are being offered under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant provisions of the Companies Act, 2013.
The company may offer a discount of up to 5% on the floor price, subject to shareholder approval, it added in its statement.
Zomato will use the proceeds to fund its business operations and strategic initiatives, though further details on the use of proceeds have not been disclosed.
The food delivery aggregator’s shares advanced on Monday on the back of two triggers — the company’s inclusion in the 30-stock BSE Sensex and an approval for its ₹8,500 crore Qualified Institutional Placement (QIP).
Zomato is the first new-age tech stock that will replace JSW Steel in the BSE Sensex as part of the index reconstitution, which will come into effect from December 23.
Shares of the company ended at ₹272.90 on the BSE, up 3.3% on Monday.
