Zomato Zomato's upcoming fund raise plan worth Rs 8,500 crore likely to get board nod: Report
New Delhi/IBNS: Leading Indian multinational restaurant aggregator and food delivery company Zomato is expected to approve a fund raise of Rs 8,500 crore, CNBC-TV18 reported citing insider sources.
The move aims to increase domestic shareholding to over 50 percent, according to the report.
Sources told CNBC-TV18 that Zomato may seek approval from the Reserve Bank of India (RBI) to limit foreign institutional investor (FII) shareholding to 49 percent.
Currently, foreign ownership in Zomato stands at 50.48 percent, with FIIs holding a 45.23 percent stake.
Following the planned fund raise, foreign shareholding (FPI+FII) is expected to decrease, as reported by CNBC-TV18.
Zomato has not yet officially responded to CNBC-TV18's inquiry, and IBNS has yet to independently verify the information.
The company's board is scheduled to review the fund raise proposal via a qualified institutional placement (QIP) on Oct. 22, alongside its quarterly results.
This would mark Zomato's first fund raising since its stock market debut in 2021.
The QIP comes as competitor Swiggy is preparing for an initial public offering (IPO), sparking interest in Zomato's decision to raise funds, especially given that the company maintains a strong cash position, even after acquiring Paytm's event business in August 2023.
In the past year, Zomato’s shares have surged by 138 percent, more than doubling investors' returns.
In comparison, the Nifty index grew by 25 percent during the same period.
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