Info Edge, One of Zomato's major shareholders has halved the offer for sale in the latter's initial public offering, reducing the IPO's overall size. The company, which is owned by Sanjeev Bikhchandani, announced on Sunday that its board has amended the company's offer for sale of Zomato shares to Rs 375 crore. The original objective was to sell 750 crore worth of shares.

The cut in size indicates that Info Edge is confidence in the company's future and wants to keep more of the company it bought for a low price. Many analysts and foreign investors are likewise optimistic about the situation. Zomato's much-anticipated initial public offering is set to take place later this month. The date, on the other hand, remains unclear. The entire offer size, excluding pre-IPO allotment, is expected to be around Rs 8,000 crore.

The stock is trading at Rs 80 a share in the grey market, or the unofficial market for unlisted shares, about 15% more than the projected IPO price of Rs 70. Zomato's shares were sold at Rs 55-60 in the most recent round of investment.

If traders' predictions are correct and Zomato offers its shares for Rs 70, Info Edge will profit 60 times its initial stake. According to the DRHP, the business led by Sanjeev Bikhchandani purchased around 18.55 percent of the company at an average cost of Rs 1.16 per share.

(Source: https://economictimes.indiatimes.com)