Zomato's IPO to Open on July14, Eyes $1.3 Billion

Zomato, the Indian food delivery startup intends to raise 93.75 billion ($1.3 billion) in an initial public offering. This is expected to boost its target by about 14 percent as demand in Indian market rises.

The bulk of this would be new shares priced at 72 rupees to 76 rupees each, while investor Info Edge India is likely sell as much as 3.75 billion of stock, according to sources. The IPO opens July 14 and closes July 16.

Zomato is among Indian companies taking advantage of a stock rally that has propelled the country’s benchmark index to record highs. The company vies with main rival Swiggy as well as smaller contenders in a fast-growing Indian food-services market that Sanford C. Bernstein & Co. estimates will balloon to $97 billion by 2025.

Bernstein estimates Zomato’s valuation at about $10 billion, or 7.5 times its approximated sales one year out. That’s a similar sales multiple that Chinese giant Meituan is valued at, Bernstein analyst Rahul Malhotra revealed in a note last week.

The IPO will be a boon for Jack ma’s Ant Group, which is benefiting from its early investments in Indian internet companies that inlcude Zomato and digital payments startup Paytm, set to list later this year. Zomato’s other backers include Tiger Global Management and Temasek Holdings Pte.

Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities, BofA Securities and Citigroup Global are managing the sale.