Zepto halts IPO plans amid valuation mismatch with investors

Trading major Zepto may halt plans for an initial public offering (IPO) amid mismatched valuations from domestic institutional investors, people familiar with the matter told CNBC-TV18.

According to sources, the company is likely to raise fresh capital from existing investors as it re-evaluates market conditions and valuation expectations.

The main driver behind the potential pause is the valuation freeze. Sources said Zepto has lowered its valuation expectations to $4-5 billion, from a high target of around $7 billion, in an attempt to attract investor interest. However, bids from domestic institutions are learned to have come in at an initial value of 3.5-4 billion dollars, about 30-40% lower than the company’s revised request.

Zepto received approval from the Securities and Exchange Board of India (SEBI) on May 8 and submitted to the public a draft revised herringbone regulation (UDRHP) in June. The IPO offer includes a fresh issue of ₹8,010 crore and an offer for sale (OFS) of 11.35 crore shares.

The sources added that the company’s FY26 financial report remains valid for the IPO process until September 30, which leaves a limited window if it decides to revive the public issue.

Zepto did not respond to CNBC-TV18’s questions about the development.