LIC looking to bid in Zomato IPO: Report

The food delivery platform aims to raise 9,375 crore through the initial share offering which will open on July 14

IPO-bound insurer Life Insurance Corporation of India (LIC) is mulling bidding for food delivery platform Zomato's IPO

LIC, which typically invests in secondary markets unless a public issue is part of the divestment process of the government, is expected to bid in the IPO that opens on July 14, Mint reported on Monday, citing internal sources.

The food delivery platform aims to raise 9,375 crore through the initial share offering, opening on July 14.

Other than the IPO, the company is also planning to launch a grocery delivery section on its app, and has invested Rs 745 crore in grocery delivery platform Grofers.

“Zomato’s growth curve demonstrates how rapid India’s transition to the internet economy has been,’’ One of the two people told the publication.

“LIC’s investment committee will hold a meeting soon to take a final decision on the plan to invest in Zomato’s IPO," the second person said.

The Zomato IPO comprises of a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd.

Zomato's valuation post-IPO on a fully-diluted basis will be Rs 64,365 crore, far more than the other listed companies in the food segment such as Jubilant FoodWorks (market capitalisation of Rs 41,006 crore) and Burger King India (Rs 6,627 crore).

(With PTI inputs)