Zomato gets shareholder approval to raise Rs 8,500 Cr via QIP

Foodtech major Zomatohas received shareholder approval to raise up to Rs 8,500 crore through qualified institutional placements (QIP).

The shareholders passed a special resolution to raise capital via a QIP by issuing equity shares to eligible investors, with 99.79% voting in favour, according to a stock exchange filing.

The Gurugram-based firm’s board had approved its capital raise plans in October.

This development comes as the Deepinder Goyal-led company’s competitors ramp up their financial resources.

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In addition to passing the QIP resolution, shareholders approved the implementation of Zomato’s Employee Stock Option Plans (ESOPs) for 2018, 2021, 2022, and 2024 through a trust structure.

The approval also authorises Zomato to provide an interest-free loan to the Foodie Bay Employees ESOP Trust, which will be used to fund the implementation of these plans.

On Friday, BSE Ltd announced that Zomato will be added to its benchmark Sensex index starting December 23, while JSW Steel will be removed. The shares of the foodtech company closed at Rs 266.75 on Friday.