Info Edge on Tuesday said it will sell stake worth Rs 750 crore in the initial public offering (IPO) of its investee company Zomato.
In a regulatory filing, Info Edge said Zomato -- an online food delivery platform -- is proposing an IPO of its equity shares, comprising a fresh issue of equity shares by Zomato Ltd and an offer for sale by Info Edge (India) Ltd.
"The Board of Directors of the Company today considered and have given their approval to the company to participate in the said Offer for Sale of up to such number of shares of Zomato Ltd as would aggregate upto Rs 7,500 million...," it added.
The terms and conditions of these will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements, the filing said.
On April 23,Zomato had announced the appointment of five independent directors on its eight-member board, including four women.
In February,Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at USD 5.4 billion.
On a fully converted and diluted basis, Info Edge's effective stake in Zomato stands at 18.4 per cent, Info Edge had said.
Last year, Zomato founder and CEO Deepinder Goyal had told employees that the company plans to go for an IPO in the first half of 2021.
The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.
Zomato's FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around Rs 2,200 crore.
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