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Zomato QIP Issue: The Qualified Institutional Placement (QIP) issue of the food delivery platform Zomato has opened. The company will raise Rs 8,500 crore from the QIP issue. The fundraising committee has also given the green signal to launch the issue. Zomato's stock rose by about 4 percent on Monday, December 25. The stock jumped 3.58 percent to close at Rs 273.60 on the BSE. After this, the stock is also rising on Tuesday. At around 11 am, the company's stock is at Rs 275.90 on the BSE with a gain of Rs 2.30 or 0.84 percent.
What is the floor price of the issue
?Zomato has fixed the floor price for this issue at Rs 265.91 per equity share. The company's stock is currently at Rs 275.90. That is, a discount of 3.77 percent from the current price. According to the company's exchange filing on Saturday, the fundraising committee has approved the launch of the issue.
Over 99.7% of shareholders approved the fundraising of Rs 8,500 crore through QIP, aimed at strengthening the balance sheet of Zomato in the competitive rapid commerce business.
Zomato has less cash
Z.omato founder and CEO Deepinder Goyal stressed the need to increase cash reserves despite the fact that the company is profitable. The company's CFO Akshat Goyal said that the size of the ffundraisingwill be determined by market conditions.
Zomato's cash position stood at Rs 10,813 crore as of September 30, down from Rs 12,539 crore in June, due in part to its acquisition of Paytm's events and ticketing company for Rs 2,048 crore.
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