Currently, the buzz around Zomato is that the food tech platform has been approved by the Securities and Exchange Board of India to generate funds through an initial public offering (IPO).

In Zomato's upcoming public offering, the company will most likely issue new equity shares worth Rs 7,500 crore, with the company's early investor Info Edge India Ltd selling a stake worth Rs 750 crore.

The net proceeds (including pre-IPO funding) will be used to fund organic and inorganic growth projects worth Rs 5,625 crore.

Also, the food tech platform is projected to conduct a pre-IPO placement in consultation with the managers for a total sum of not more than 1,500 crore at a final price determined by the firm.

Earlier, Zomato submitted its long-awaited drafted red herring prospectus to the SEBI market regulator in order to raise more than $1 billion through a mix of a new stock issue and the sale of existing shares (DRHP).

The online food-tech platform said it expects to raise $1.1 billion (Rs.8,250 crore) from its first public offering. A new issue of equity shares worth Rs.7,500 crore (roughly $1 billion) would be made as part of this.

Info Edge, Naukri's parent company, has previously informed stock exchanges of their intention to sell $ 100 million worth of shares in Zomato's initial public offering. Info Edge currently owns about 18.5 percent of the company, with a share capital of Rs.7,270 crore.

After that, the Food-tech platform stated that it may contemplate a pre-IPO sale of equity equities for Rs.1,500 crore (about $200 million) before filing the red herring prospectus (RHP) with the business registrar.

Zomato's offer size is expected to climb above $1 billion, with the primary fund raising expected to be approximately 20 percent higher.

From Rs.466 crore in FY18 to Rs.2,604 crore in FY20, the platform's operating revenue increased by 5.5 percent in three years. It also said that its operating revenue for the nine months ended December 31 was Rs.1,301 crore.

It later cited losses of Rs.106,9 crore, Rs.1,010 crore, Rs.2,385,6 crore, and Rs.682 crore for fiscal years 2018, 2019, and 2020, respectively, as well as the nine months ending on December 31, 2020. It then recalled a string of net losses and stated that future spending will be increased.

However, much earlier the food tech platform closed $250 million in new funding from investors Tiger Global, Kora, and Fidelity, valuing the company at $5.4 billion post-money, up from $3.9 billion after raising $660 million in December last year.