Zepto Secures SEBI Nod, Moves Closer to USD 1 Bn IPO

Quick commerce company Zepto has moved a step closer to going public after receiving key approvals from SEBI, marking an important milestone in its listing journey. The regulator issued its observations on the company’s draft red herring prospectus (DRHP) between May 4 and 8, effectively giving it the go-ahead to launch an initial public offering (IPO).

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto has grown rapidly from a pandemic-era grocery delivery startup into an IPO-bound company within five years. Its swift rise makes it one of the fastest consumer startups in India to approach the public markets.

The Bengaluru-based firm had confidentially filed its DRHP in December, opting for a route that allows companies to seek regulatory feedback without immediately disclosing details to the public. This method has become increasingly popular among companies aiming to better manage the timing and perception of their IPO plans.

Zepto’s IPO size is currently estimated at around INR 8,000–9,000 crore, lower than earlier expectations of INR 11,000–12,000 crore. However, the final size and pricing are yet to be determined and could change depending on market conditions. The offering is expected to be largely a primary issue, meaning most of the funds raised will go directly to the company rather than existing investors.

If listed, Zepto will join competitors Zomato and Swiggy in the public markets. Zomato, which went public in 2021, has since expanded into quick commerce through Blinkit and now commands a market value exceeding INR 2 lakh crore. Swiggy, which listed more recently, has faced increased investor scrutiny, particularly around its profitability timeline.

Zepto’s entry into the stock market is expected to draw close attention from investors, especially regarding its financial performance, path to profitability, and ability to compete in a capital-intensive sector.

Alongside Zepto, several other companies have also received SEBI’s nod through the confidential pre-filing route. Dhoot Transmission, an auto components manufacturer backed by Bain Capital, is planning to raise about USD 250 million (around INR 2,258 crore) through a mix of fresh issue and offer for sale. The IPO is expected to provide Bain Capital with a partial exit.

Blackstone-backed Horizon Industrial Parks is aiming to raise INR 2,600 crore through a fresh issue. A large portion of the proceeds, around INR 2,250 crore, will be used to reduce debt, highlighting a focus on strengthening its financial position.

Medical devices manufacturer Surgiwear, based in Uttar Pradesh, is also preparing to go public with an IPO of up to INR 370 crore, along with an equal-sized offer for sale. The company plans to invest in new machinery and repay debt using the funds raised.

Agrochemical firm Crystal Crop Protection is looking to raise INR 600 crore through a fresh issue, along with an offer for sale of more than 74 lakh shares by existing investors, including International Finance Corporation entities. The company intends to use the capital for debt repayment and strategic growth initiatives.

Meanwhile, Hotel Polo Towers, which operates hotels across several regions in India, plans to raise INR 300 crore through a fresh issue and an offer for sale of 71.2 lakh shares. Its listing could bring greater visibility to hospitality infrastructure in underrepresented regions such as the northeast.

Together, these developments indicate a steady pipeline of companies preparing to tap public markets, reflecting continued investor interest across sectors ranging from technology and manufacturing to healthcare and hospitality.