Zomato has raised ₹8,500 crore through a share sale to institutional investors, which largely comprised domestic mutual fund houses.

Proceeds from the issue, which closed on Friday, will be used to fund the expansion plans of Zomato and quick commerce business Blinkit.

Zomato launched the qualified institutional placement issue on November 25. This is the first major fundraise after it was listed in July 2021.

Zomato said its fund raising committee approved the allotment of 33,64,73,755 (33.65 crore) shares to eligible qualified institutional buyers at an issue price of ₹252.62 per share, aggregating to ₹8,500 crore.

These shares were allotted to investors at 5 per cent discount from the floor price, which was fixed at ₹265.91 per share. Four domestic mutual fund houses — ICICI Prudential, Motilal Oswal, HDFC and Kotak — were allotted over 5 per cent of the equity shares offered in the QIP issue.

Motilal Oswal emerged as the biggest participant picking up 21 per cent share of the allocation by investing around ₹1,750 crore.

Zomato CEO Deepinder Goyal had said the proposed fundraise would strengthen its balance sheet. Shares of the firm on Friday ended 2.31 per cent lower at ₹279.50 on the BSE. At close, the company had a market cap of ₹2,46,975.76 crore.

Rival Swiggy garnered ₹5,085 crore from anchor investors ahead of its IPO earlier this month. The ₹11,327-crore initial public offering (IPO) was subscribed 3.59 times. The Swiggy stock debuted at a premium of almost 17 per cent against the issue price.