Zomato QIP: On Thursday, the food delivery platform announced that its board will consider raising funds via a qualified institutional placement (QIP) in the coming week. In a regulatory filing, Zomato stated that a meeting of the board of directors is scheduled for October 22 (Tuesday).
The board, Zomato stated, will consider and approve the "raising of funds by issuance of equity shares by way of qualified institutional placement, as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including the notice for the postal ballot for obtaining the shareholders' approval in this regard, as may be required."
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At 11:50 am, the shares of the food delivery company were trading at Rs 260 price level, down by nearly 4 per cent on the National Stock Exchange.
The company will also release its quarterly results for the July-September period on the same date.
It is worth pointing out that Zomato's fundraise plans come at a time when its rival Swiggy is all set to make its entry in the primary market in the upcoming month.
The Swiggy IPO is one of the most highly anticipated public offerings of 2024, and D-Street is eagerly watching for its bidding date.
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Zomato's share price trajectory
The share price trajectory of the food delivery platform has largely been on an upward trend. So far this year, Zomato's shares have delivered a multibagger return of nearly 110 per cent.
The performance has been even better on an annual basis, where the shares of the food delivery company have yielded a return of over 130 per cent. The market capitalisation of the company stands at a modest Rs 2.26 lakh crore. However, the triple-digit PE ratio does raise a sign of caution on the street.
Just a few months back, Zomato had completed its acquisition of Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL), the event ticketing subsidiaries of the troubled fintech firm, Paytm.
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