A major domestic entity has committed $100 million funds out of the $350 million secondary share sale while the remaining $250 million is likely to come from family offices, HNI clients of a major mutual fund.
According to a report by Moneycontrol, MOFSL’s founders Motilal Oswal and Raamdeo Agrawal, in their personal capacity, bought shares worth $50 million (around Rs 425 crore) each in Zepto.
The transaction is expected to provide partial exit to offshore investors of Zepto, where Nexus Venture, Glade Brook, Stepstone, General Catalyst are said to sell partial stakes.
Every foreign shareholder will sell a proportionate 15% of their holdings in Zepto to buyers, the report said.
Meanwhile, Zepto founders seek to raise Indian shareholding in the firm to 42% by the end of the transaction while taking the domestic shareholding to over 50% ahead of filing documents for planned IPO.The move by the promoters is with an intention to make Zepto an Indian owned and controlled company ahead of the IPO.Zepto founders have signed a binding debenture agreement for Rs 1,500 crore structured deal and it will allow Zepto founders to increase holdings in the firm.
Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra.
Citing sources, the report further said that the structured funding will be raised via a holdco firm controlled by Zepto promoters.
Yield on the structured equity funding is linked to equity performance of Zepto’s shares, offering investors 16% annualised internal rate of return. Any upside over the 16% IRR will be split among Zepto’s promoters and structured equity investors. Meanwhile, founders will likely compensate investors in the product for downside risk to the 16% IRR threshold.
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