Zomato turns a public company ahead of IPO

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Zomato has undertaken a corporate revamp to convert itself into a public limited company from a private company.

The name of the firm has been changed to Zomato Limited from Zomato Private Limited, the regulatory filings showed.

The company passed a special resolution earlier this month, amending its MOA (Memorandum of Association) and renaming itself as Zomato Limited from April 09, 2021.

With this, the foodtech giant has taken another step ahead towards its IPO (Initial Public Offering), which is likely this year.

Zomato, which started its operations as a restaurant review and discovery platform, is reportedly mulling to raise between $650 million to $1 billion through the primary stake sale.

Regulatory filings sourced from the business intelligence platform Tofler showed that Zomato is preparing to file a draft red herring prospectus (DRHP) with the SEBI and relevant stock exchanges within this month.

“The company was originally incorporated as a private limited company on January 18, 2010, and the company wish to convert itself into a public company. The members were hereby informed that the company is considering the filing of a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and relevant stock exchange(s) and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company is required to be converted into a public limited company,” the food delivery app said in the filings made earlier this month.

Zomato plans to launch an IPO in the first half of this year, as per an internal email sent by founder and CEO Deepinder Goyal to the company’s employees last year.

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The foodtech giant has been on a fundraising spree, raising around $910 million from a bevy of investors throughout 2020 and early 2021. Zomato’s valuation presently stands at $5.4 billion.