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Zomato IPO: Should you Invest? How many shares? What to expect in returns? – Know

Well-known food delivery giant Zomato is bringing an IPO to list itself in the indian stock market. The company is preparing to raise Rs 9,375 crore thr…

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Zomato Zooms on Listing: Zomato shares rise sharply, market cap crosses 1 lakh crore as soon as the listing

Well-known food delivery giant Zomato is bringing an IPO to list itself in the indian stock market. The company is preparing to raise Rs 9,375 crore through this IPO. Zomato says that the company will use the proceeds from the IPO to increase its business.

Let us tell you, Zomato will become India’s first unicorn (value over $1 billion) startup to go public.

When is Zomato’s IPO coming?

The company was filed a Draft Red Herring Prospectus (DRHP) with SEBI in April. Market regulator SEBI has given green signal to the company to bring IPO.

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According to the latest news, the company will bring its IPO in the market on July 14. Earlier the issue was likely to be released on July 19.

Also Read: IPO: Another earning opportunity, Tatva Pharma’s IPO is opening on 16

Price Band-

The price band of the share in IPO can be ₹72 to ₹76.

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Know the company’s investors:

The list of current investors of the company includes the names of Info Edge, Uber BV, Alipay Singapore Holding, Antfin Singapore Holding, Tiger Global, Sequoia Capital, Co-Founder Deepinder Goyal etc.

Info Edge will sell its stake in the company for Rs 375 crore through an offer for sale (OFS).

It is being speculated that Zomato’s IPO will be the biggest IPO of recent years.

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The company is still in loss:

Online food delivery business has increased significantly during the time of Covid. The company’s revenue has doubled in the financial year 2019-20, although despite this the company has failed to make profit.

With the introduction of some more food delivery startups with Swiggy, pricing competition is being seen in the market, due to which the company is incurring loss instead of profit in the business. It will be interesting to see how Zomato uses its funding to gain a foothold in the market.

As Zomato is currently a loss making company, retail investors will be able to get only 10% of the total issue in this. In a normal IPO, generally 35% of the total issue of the company is kept for retail investors.

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Also Read: How Healthcare Industry Is Affected By Covid-19

About Company:

Zomato is an online food delivery startup. Apart from delivery, it also provides menus of various restaurants on the website. According to the Zomato website, this company, which started in 2008, is currently offering its service in about 10,000 cities in 24 countries. The current number of employees of the company is around 5,000.

What do the experts think?

Ramdev Agarwal, Chairman, Motilal Oswal, says that “such companies will invest all profits in acquiring customers and it is difficult to predict when they will make real profits“.

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Manvendra Chaudhary, with over 5 years of professional experience as CEO of Unique News and Megalent Marketing, shares insights on life, business, and health for your success.

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