The stock rose 1.43 per cent to Rs 5,229.85 on the BSE in an otherwise muted session for the broader market so far.
Zomato raised Rs 4,197 crore from 186 anchor investors on Tuesday ahead of the IPO opening. The company informed the stock exchanges that it had allotted 55.22 crore equity shares to anchor investors for Rs 76 per equity share.
Info Edge had a cash balance of Rs 3,592 crore as of March 31, 2021, and would receive Rs 375 crore from monetisation of its stake in the IPO. Analysts see the amount to be largely utilised for merger and acquisition opportunities in core business areas.
Info Edge earlier intended to raise Rs 750 crore from the OFS. The reduction in size means Info Edge is confident of the company’s future and wants to hold more of the company that it had acquired cheaply. A few brokerages are positive on Info Edge stock.
“We expect a strong 27 per cent CAGR in revenue over FY2021-FY2023E, led by a recovery in billings across key businesses, increasing adoption of online real estate platform, higher hiring activities, and strong volumes in Jeevansathi.com business. We continue to like Info Edge, given its leading market share in its core businesses, proactive in its new product offerings, a strong balance sheet, and proven track record of identifying scalable online businesses early,” Sharekhan said in a recent note.
