Zepto IPO
Quick commerce (q-commerce) company Zepto is reportedly planning to file draft documents for its initial public offering (IPO) through the confidential filing route.
After submitting its Draft Red Herring Prospectus (DRHP), the company aims to get listed on the stock exchanges in the next financial year.
Zepto’s move is expected to mark the first-ever stock market debut of a pure-play quick commerce platform in India. However, the company has not yet made any official announcement regarding this development.
As part of its IPO preparations, the Bengaluru-based company has recently converted itself from a private entity into a public limited company. According to documents filed with the Ministry of Corporate Affairs (MCA), the company has changed its name from Zepto Private Limited to Zepto Limited.
According to a Bloomberg report, the IPO size is expected to be around $500 million.
For the draft prospectus filing, Zepto is reportedly working with Axis Bank Limited, Motilal Oswal Investment Advisors Limited, and the Indian units of Morgan Stanley, HSBC Holdings Plc, and Goldman Sachs Group Inc.
The report added that the IPO will include a fresh issue of shares as well as an offer for sale (OFS) by existing investors. Amid rising competition in the quick commerce sector, the company plans to use a significant portion of the funds raised through the IPO to expand its quick commerce operations.
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