With the two Indian unicorns’ start-ups slated to go public in the next few weeks, global investors will likely invest in India’s stock market.
The first one is Zomato, a restaurant aggregator and food delivery venture, whose public issue of shares will open on June 14. Through a fresh issue of shares, the company aims to raise $1.25 billion.
Zomato’s public issue adds Rs 90 billion worth of new issue shares and 3.75 billion through an offer for sale by the parent company Info Edge. The information available on the BSE stock exchange indicates that Zomato’s shares will be priced between Rs 72 and Rs 76.
Info Edge, which holds the most significant stake of 18.6% in the food delivery start-up, has halved its OFS (offer for sale) size in the latter’s initial public offering (IPO) from Rs 750 crores to Rs 375 as planned earlier.
Founded by Sanjeev Bikhchandani, an Indian internet entrepreneur, Info Edge, during an exchange filing on July 4, stated that the reviewed OFS by the company would consist of a number of equity shares held in Zomato, as would aggregate up to Rs 3,750 million. The terms and conditions would be specified in the red herring prospectus and the prospectus filed in connection with the officer and other offer related documents and agreements.
Other investors of Zomato are Uber B.V., Antfin Singapore, Alipay Singapore etc.
Paytm, a mobile payments and commerce platform that Vijay Shekhar Sharma founded, is next in line. With the plan of Rs 166 billion, the company will seek its shareholders’ approval for the initial public offering of its share and finalise the details of the issue soon. Recently it restructured its board.
Alibaba, SoftBank, Berkshire Hathaway and MediaTek are some investors of Paytm.
With the IPO launch, both the companies will be profitable and will bring an opportunity to some of the existing investors to either partially or fully exit their exit. It will also offer opportunities to employees who acquired stock options at low valuations to sell their shares and make money out of them.