Online food order aggregator Zomato on Friday said it has raised Rs 8,500 crore by selling equity shares to qualified institutional investors to meet its growth objectives. Company CEO Deepinder Goyal had earlier said that the purpose of the proposed fund raising is to strengthen its balance sheet. According to PTI news, the company opened its Qualified Institutional Placement (QIP) issue on November 25, which closed on Thursday.
Approval to allot shares
According to the news, in papers filed with a regulator, the company said that the fund raising committee of its board has approved to allot 33,64,73,755 (33.65 crore) shares to eligible institutional buyers at the issue price of Rs 252.62 per share. has been approved, which totals Rs 8,500 crore. These shares were allotted to investors at a 5 per cent discount to the floor price, which was fixed at Rs 265.91 per share. At 14:26 hrs on Friday, Zomato shares were trading at Rs 280.15 per share, down 2.08 per cent.
facing CCI investigation
Zomato, which is facing CCI investigation for anti-competitive activities, has claimed a few days ago that it is in compliance with the laws of the country. On investigation by the Competition Commission of India (CCI), the company had termed as misleading the news in which Zomato allegedly gave preference to some restaurant partners.
Company's financial results
Zomato Ltd has reported a consolidated net profit of Rs 176 crore in the July-September quarter. The company's integrated operating revenue during the period under review stood at Rs 4,799 crore. Its total expenditure during this period was Rs 4,783 crore whereas it was Rs 3,039 crore in the same period a year ago. Zomato had said that its September quarter and first half results cannot be compared with other quarters and half year results.
Image Credit: India_Tv.