CAM advises Zomato on its ₹8,500 crore fundraise via QIP

Cyril Amarchand Mangaldas (CAM) advised food delivery aggregator Zomato's fundraise of ₹ 8,500 crore through a Qualified Institutional Placement (QIP), allocating 33.65 crore equity shares at Rs 252.62 per share.

The transaction was led by Yash Ashar, Senior Partner; Aashima Johur, Partner; with support from Amitpal Singh (Principal Associate); Dhawal Nirash (Associate); Anomitra Debnath (Associate); Kanika Bhakhna (Associate); and Abhinav Singh Chauhan (Associate).

Morgan Stanley India Pvt Ltd was the book running lead manager of the transaction.

The QIP launched on November 25, 2024, and closed on November 28, 2024. The allotment was completed on November 29, 2024.

Zomato's Fund Raising Committee announced the closure of its Qualified Institutional Placement (QIP) on November 28, 2024, following the receipt of applications and funds from eligible institutional buyers.

This marks Zomato's first major fundraising effort since its IPO in July 2021. The proceeds are intended to strengthen the company's balance sheet and support strategic growth initiatives, as previously stated by founder Deepinder Goyal.

Of the total funds raised, ₹2,137 crore will be allocated to expanding Blinkit, Zomato's quick commerce unit. The focus will be on investing in dark stores and warehouses to enhance its operational infrastructure. Additional funds will be utilized for advertising and marketing, aiming to bolster Zomato's position in the competitive food delivery and quick commerce sectors.

Separately, Zomato’s shares have been included in the National Stock Exchange’s futures and options (F&O) segment starting today, November 29. This move will likely enhance liquidity and provide investors with hedging and speculative trading in the stock. Inclusion in the F&O segment is also a prerequisite for a stock's entry into the Nifty 50 index.