Zepto, quick commerce acepted, one of the most prominent companies in India, is going to place its initial public offering (IPO) as a way to meet its entry into the capital markets. The firm will attempt to generate about ₹4,000 crore, that is nearly $500 million, through the public issue.
As the sources reveal, Zepto is going to file its draft red herring prospectus (DRHP) next week, through a confidential filing route, with the Indian regulator, the Securities and Exchange Board (SEBI). The IPO will include both a new issue of shares and an offer for sale (OFS) by the current shareholders.
It’s anticipated that the company will use the money raised through the IPO mainly for the further expansion of the company’s operations and the establishment of its quick delivery services in the most important markets.
The quick commerce in India is rapidly growing, hence, the competition is also getting more intense with players like Swiggy’s Instamart, Zomato’s Blinkit, Tata Group’s BigBasket, and Amazon’s Amazon Now, who just entered the market, battling for consumer attention. Meanwhile, as the sector grows so fast, the global investors’ interest in these companies is also very high, showing no signs of weakening.
According to the reports, Zepto is negotiating with several leading investment banks like Axis Bank, Morgan Stanley India, Motilal Oswal Investment Advisors, HSBC, and Goldman Sachs to be the ones to manage the public issue.
