The Qualified Institutions Placement (QIP) of equity shares raised Rs 8,500 crore, Zomato Limited announced on Friday. The fundraise was approved by the foodtech company’s shareholders last week.
A premium of Rs 251.62 per share was included in the issuance of 33,64,73,755 equity shares at a price of Rs 252.62 each. The company stated in its stock exchange filings that this issuance price is a 5% reduction from the established floor price of Rs 265.91 per share.
This investment is anticipated to strengthen Zomato’s financial standing and support strategic plans and business growth, particularly in the quick commerce sector through Blinkit.
At its meeting earlier today, Zomato’s Fund Raising Committee approved the offering, which went live on November 25 and ended on November 28. Notable allottees included well-known mutual funds like ICICI Prudential and Motilal Oswal, the latter of which purchased 6.92 crore shares, or 20.81% of the issue size.
Zomato’s paid-up equity share capital increased to Rs 917.28 crore following the transaction.
Zomato’s operating revenue increased by an impressive 68.5% from the previous quarter to the end of the fiscal year, from Rs 2,848 crore in Q2 FY24 to Rs 4,799 crore in Q2 FY25. In the September quarter, the company’s net profit increased by 4.8 times to Rs 176 crore.
With a 46% market share, Zomato’s Blinkit dominates the quick commerce space, according to a recent report by Motilal Oswal. With a 29% market share, Zepto is in second place, and Swiggy Instamart is in third with a 25% share.
