According to sources, the company is instead likely to raise fresh capital from its existing investors while it reassesses market conditions and valuation expectations.
The key trigger behind the likely pause is a valuation standoff. Sources said Zepto had lowered its valuation expectation to $4-5 billion, from a peak target of around $7 billion, in an attempt to attract investor interest. However, bids from domestic institutions are learnt to have come in at a pre-money valuation of $3.5-4 billion, about 30-40% below the company’s revised ask.
Zepto received approval from the Securities and Exchange Board of India (SEBI) on May 8 and publicly filed its updated draft red herring prospectus (UDRHP) in June. The proposed IPO comprises a fresh issue of ₹8,010 crore and an offer for sale (OFS) of 11.35 crore shares.
Sources added that the company’s FY26 financial statements remain valid for the IPO process only until September 30, leaving a limited window should it decide to revive the public issue.
Zepto has not responded to CNBC-TV18’s queries on the development.
(Edited by : Ajay Vaishnav)
