Info Edge will now only sell shares worth ₹375 crore in Zomato IPO

• Info Edge was initially planning to sell shares worth ₹750 crore in the upcoming Zomato IPO.
• The Sanjeev Bikhchandani-led company is the biggest stakeholder in Zomato, followed by Uber.
• Zomato is looking to raise ₹8,250 crore or $1.1 billion in its upcoming IPO.

Info Edge has reconsidered its offer to sell shares worth ₹750 crore in the upcoming initial public offering (IPO) of food delivery app Zomato. The Sanjeev Bikhchandani-led Indian internet company will now be selling only 50%, or ₹375 crore, of the initial offer as offer-for-sale (OFS) in Zomato’s IPO.

Info Edge, in a stock exchange filing released on July 4, said, “The Committee of Executive Directors of the Company, having been duly authorised in this regard, have considered and given their approval today (further to the resolution passed by the Board of Directors of the Company on April 27, 2021) for a reduction in the size of the Offer for Sale by the Company to the extent permitted under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018...”

Business Insider has reached out to Info Edge seeking further clarification on the same.

Zomato had filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) on April 28, 2021. The company specified that it is looking to raise ₹8,250 crore ($1.1 billion) through this IPO. Reports suggest that this offering may value the company somewhere around $8 billion.

Currently, Info Edge is the biggest stakeholder in Zomato with shareholding of 18.7%. It is followed by Uber, which was allocated shares of 9.2%, after it sold its UberEats India business to Zomato in January 2020.

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