Mumbai: Food aggregator Zomato, which announced a massive 388% YoY Q2FY25 net profit on Tuesday, revealed plans for a qualified institutional placement (QIP) to raise additional funds, reinforcing the bullish sentiment from brokerages, media reports said.
Zomato has announced the QIP despite holding $1.2 billion in reserves, Moneycontrol reported.
Zomato has continued to capture investors' attention, driven by the success of its quick-commerce model.
On October 18, Zomato revealed that its board would meet on October 22 to consider fundraising via the QIP route, according to the report
While the exact amount of fundraising hasn't been disclosed, reports suggest the company could aim to raise around Rs 8,500 crore ($1 billion), the report said.
If approved, this would mark Zomato's first capital raise since its stock market debut in 2021.
Further, reports indicate that Zomato plans to apply to the Reserve Bank of India to cap foreign institutional ownership at 49 percent.
As of September, foreign investors, including institutional holdings and FDIs, collectively own around 52.5 percent of the company.
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