Naukri parent Info Edge said it would sell only 50% of the offer-for-sale (OFS) in food tech unicorn Zomato’s IPO.
Zomato’s largest shareholder had initially sought to sell equity shares worth Rs 750 crore. It will now sell Rs 375 crore worth of equity shares of Zomato, InfoEdge said in a filing.
Zomato’s IPO constituted a fresh issue of equity shares worth Rs 7,500 crore, according to the draft papers filed with the Securities and Exchange Board of India (SEBI).
“The Committee of Executive Directors of the Company, having been duly authorised in this regard, have considered and given their approval today for a reduction in the size of the Offer-for-Sale by the Company to the extent permitted under the SEBI”, InfoEdge said.
Sanjeev Bikhchandani-founded Info Edge, which had first invested about Rs 5 crore in the company in August 2010, said in April it might consider a private placement of equity shares aggregating up to Rs 1,500 crore prior to filing of the prospectus with the RoC.
Info Edge brings some of the largest global and Indian private equity funds to the game including Schroders, Matthews, Amansa, Ward Ferry, Vanguard and Nalanda, who along with other institutional investors, are expected to fuel initial success for the IPO.
Listed on BSE in 2006, Info Edge’s stock has grown about 16 times in the last 10 years. The company is today valued at about Rs 61,000 crore market cap.
Info Edge, with 18.55% ownership, is the largest stakeholder in the company followed by China’s Alibaba Group at 16.53%. It also counts several marque investors such as Sequoia Capital, Temasek Holdings, Tiger Global Management, Kora Investment, and VY Capital on its cap table.
Shares of InfoEdge were currently trading 2.60% higher at Rs 5,504.80 apiece on Bombay Stock Exchange on Monday.