In a significant move aimed at bolstering its financial standing, Zomato Ltd. has announced the approval of a Qualified Institutions Placement (QIP) to raise up to ₹8,500 crore. The decision was made during the board meeting held on October 22, where the company expressed its intent to enhance its balance sheet. This strategic fundraising is expected to strengthen Zomato’s position in a competitive marketplace.

Following the QIP, Zomato plans to apply to the Reserve Bank of India (RBI) to limit its Foreign Institutional Investment (FII) holding to 49%. Currently, Zomato's foreign holding stands at 50.48%, which includes 5.25% classified as Foreign Direct Investment (FDI), with the remaining being FII. This step reflects the company’s proactive approach to managing its foreign investment landscape, ensuring compliance with regulatory norms while maximizing operational efficiency.

The company's recent quarterly results were also released on the same day. Zomato's stock, which settled 3.44% lower at ₹256.55 on Tuesday, has demonstrated impressive performance throughout the year. In fact, the stock has more than doubled in value, showcasing a staggering 106% increase this year and a 135% rise over the past twelve months. Despite this recent dip, investor interest remains robust, indicating confidence in Zomato's long-term potential.

The fundraising initiative comes at a critical time when companies are navigating the post-pandemic recovery phase, and Zomato aims to ensure that it has adequate resources to adapt to market dynamics. The funds raised through the QIP will likely be utilized for strategic investments, enhancing operational capabilities, and potentially exploring new avenues for growth.

Zomato’s shareholding pattern shows a strong inclination towards foreign investments, which have been pivotal in driving the company's growth trajectory. The management's decision to further engage with institutional investors through the QIP reflects its commitment to maintaining a solid financial base while fostering long-term partnerships.

In addition to the QIP announcement, Zomato is keen on informing stakeholders about its operational performance and future growth prospects. The company's engagement with its investor base through clear communication and strategic decisions is vital for sustaining market confidence.

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As Zomato continues to navigate through challenges and opportunities, it remains an entity to watch, particularly as it strives to leverage its recent fundraising efforts to reinforce its operational strengths and financial health in the fast-evolving food delivery market.