SUMMARY
- Zomato’s board will review a proposal to raise ₹8,500 Cr through equity issuance on Oct 22.
- The food-tech giant seeks RBI approval to limit foreign institutional investors’ holdings to 49%.
- The business’s Q1 FY25 profit surged to ₹253 Cr, with 74% revenue growth YoY.
At its meeting on October 22, Zomato‘s board is expected to examine and approve the food-tech giant’s proposal to raise ₹8,500 crore (nearly $1 billion).
The food-tech giant may also apply to the Reserve Bank of India (RBI) for permission to cap the percentage of foreign institutional investors’ shares in the business at 49%, according to sources cited by CNBC-TV18. The company would be able to grow its domestic shareholding above 50% if the plan is approved by Zomato’s board of directors.
The business stated it would ask its board for permission to raise money by issuing equity shares through qualified institutions’ placement in an exchange filing made yesterday, October 17.
The new funding will assist Zomato in growing its exit strategy. Strong demand has been observed by the Deepinder Goyal-led organization for the tickets that are only offered on its platform for a variety of events.
Zomato’s shares were trading 4% down on the BSE, at ₹259.95 a share. The share fell more than 5%, hitting an intraday low of ₹256.
Meanwhile, in the first quarter of the financial year 2024–25 (Q1 FY25), Zomato’s net profit increased to ₹253 crore from ₹2 crore in the same quarter the previous year. Operating revenue increased by 74% to ₹4,206 crore in the June quarter from ₹2,416 crore in the first quarter of FY24.
