Zomato’s QIP is going to open soon. The company has decided to raise funds through a public offering. Zomato is one of the top online food delivery platforms, consistently increasing its profits yearly. The company issued its IPO in July 2021. This will be the first time after the IPO that Zomato will raise funds through a Qualified Institutional Placement (QIP). Everyone wants to know how much Zomato will raise this time.
Zomato Decides To Raise Funding Through QIP
Zomato’s QIP announcement has made everyone eager to know how much money it will raise. However, the company has not disclosed the amount it plans to raise. It announces fundraising through QIP near Swiggy’s IPO discussions, which could be the company’s competitive strategy. Both Swiggy and Zomato are tough competitors. In its IPO, Zomato raised 9,000 crore rupees. After that, it also became profitable. Regarding Zomato’s share price, each share is currently priced at 270.55 rupees. Today, it opened at 275 rupees per share and closed at Rs. 270.3.
Zomato will get permission from the board to approve it. If the board approves, Zomato will launch the QIP. The company is also preparing to release its quarter results soon. It had a consolidated profit of Rs. 253 crores in Q1 FY 25. It was both QoQ and YoY increase. Zomato has grown a lot in the past year. It was on a profit of Rs. 36 crores only a year ago in Sep 2023. In the previous quarter, it grow to Rs. 253 Crores. The company expects higher returns this quarter.
After obtaining approval from the company’s board members, they will issue equity shares or IPO. The company will also send notices for a postal ballot to get approval from shareholders. Once the process is complete, the company will proceed with the IPO. This will be the first opportunity for the public to raise funds after its IPO. Zomato is expanding towards international markets. It can use the funds for that purpose. After being profitable, the company has a cash balance of 12,241 crore rupees. However, the company has not yet agreed to provide dividends to shareholders.
Zomato is aggressively expanding. It has announced the expansion of its subsidiary company, Blinkit. Under the company, it is efficiently reducing the delivery time for its customers. In just 10 minutes, the company has now reached an 8-minute delivery. It is also aiming for a 6-minute delivery. The company is now planning to acquire Paytm’s events and ticketing business for Rs. 2,048 crores.