Zepto files for $1.3-billion IPO: Report
In a significant development, the quick commerce platform Zepto has received approval from its board of directors for a $1.3 billion (approximately ₹11,680 crore) Initial Public Offering (IPO) with markets regulator SEBI, sources told Inc42. The company plans to raise around ₹11,000 crore through fresh issue, while the remaining amount will be raised by early investors selling their shares. The shareholders approved the IPO on December 23, marking a major milestone for the company.
Zepto, a relatively new player in the Indian e-commerce space, has been making waves with its quick commerce model, which promises to deliver groceries and other essentials to customers within a short span of 10-15 minutes. The company has been expanding rapidly, and its decision to go public is seen as a significant step towards further growth and expansion.
The IPO, which is expected to be one of the largest in recent times, will provide Zepto with the necessary funds to fuel its growth plans, including expanding its operations, improving its technology, and enhancing its customer experience. The company plans to use the fresh issue proceeds to invest in its business, including setting up new warehouses, improving its logistics, and expanding its product offerings.
The IPO will also provide an exit opportunity for early investors, who will be selling their shares as part of the offer. This will not only provide them with a return on their investment but also give them an opportunity to cash out some of their holdings. The sale of shares by early investors will also help to increase the liquidity of the company’s stock, making it more attractive to potential investors.
The approval of the IPO by the company’s board of directors and shareholders is a significant milestone for Zepto, and it marks a major step towards the company’s plans to go public. The company will now file its draft red herring prospectus (DRHP) with SEBI, which will provide more details about the IPO, including the issue size, price band, and other relevant information.
The DRHP will also provide insights into the company’s financial performance, including its revenue, profit, and loss statements, as well as its future growth plans and prospects. This information will be crucial for potential investors, who will be looking to assess the company’s financial health and growth potential before making an investment decision.
Zepto’s decision to go public is seen as a significant development in the Indian e-commerce space, which has been witnessing rapid growth in recent times. The company’s quick commerce model has been gaining traction, and its expansion plans are expected to further boost its growth prospects.
The Indian e-commerce market is expected to continue growing rapidly, driven by increasing internet penetration, improving logistics, and changing consumer behavior. The market is expected to reach $150 billion by 2025, growing at a compound annual growth rate (CAGR) of 30%, according to a report by ResearchAndMarkets.com.
Zepto’s IPO is expected to be one of the most highly anticipated IPOs in recent times, and it is likely to generate significant interest among investors. The company’s strong growth prospects, combined with its unique business model, make it an attractive investment opportunity for those looking to tap into the growing Indian e-commerce market.
In conclusion, Zepto’s decision to file for a $1.3 billion IPO is a significant development for the company and the Indian e-commerce space. The company’s plans to raise funds through a fresh issue and offer for sale will provide it with the necessary resources to fuel its growth plans and expand its operations. The IPO is expected to be one of the largest in recent times, and it is likely to generate significant interest among investors.
As the company moves forward with its IPO plans, it will be interesting to see how the market responds to its offer. The company’s financial performance, growth prospects, and unique business model will be closely watched by investors, and its IPO is expected to be a major event in the Indian e-commerce space.
Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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