Daily News

Zomato IPO opens next week. The IPO of online food delivery and restaurant discovery platform Zomato is on the buzz for some time now. The company is knocking on doors for its initial public offering (IPO) on Dalal Street as it is set to open for subscription on July 14.

Zomato IPO

The online food delivery company has set the offer price for its public offering at ₹72-76 a share. The offer size can be as much as ₹9,375 crores, which makes it the second-biggest IPO since SBI Cards and Payment Service last year. The price for SBI Cards and Payment Service IPO was set for ₹10,340 crores in March, last year. The issue, which closes on 16 July, contains an offer for the sale of ₹375 crores by the company’s early investor, Info Edge. Also, a fresh issue worth ₹9,000 crores will be on the offer. The stock will most likely list on the exchanges on 27 July.

zomato ipo

The hunger for tech-driven IPO like Zomato is very high which will ensure easy digestion of such IPOs. Such companies will not get their valuation as per the traditional valuation methods. Despite the losses shown in companies’ documents, their valuation is even more than some traditional giants. The ability to reach the doorstep of any customer is a great strength that may open the doors of new business avenues. However, such disruptive businesses are a double-edged sword, as the entry of any big pocketed player may pose a severe threat to the business. From a long-term perspective, we need to constantly track the company’s performance, acquisitions, expansions, and whether the company is heading on the path of profitability continuously.

Zomato IPO details -

  • Issue period: 14 July 2021 – 16 July 2021
  • Size of the IPO: ₹93.75 billion
  • The price band of IPO: ₹72 to ₹76 per share
  • Bid lot for IPO: Minimum lot of 195 shares, and in multiples of 195 thereafter
  • Quota size of the IPO: For the retail category, the quota is fixed at 10% of the net offer. However, for qualified institutional buyers (QIB) at 75% and non-institutional investors (NII) quota at 15%.
  • Global coordinators and Book Running Lead Managers (BRLMs): Kotak Mahindra Capital, Morgan Stanley India, and Credit Suisse Securities (India).
  • Bank of America (BofA) Securities and Citigroup Global Markets India will be managing the issue. Whereas, Link Intime India is the registrar of the issue.
  • GMP: Zomato grey market premium is trading at around 13-15. The numbers are approximately 20% over the upper end of the IPO price band of ₹76, as per market observers. The grey market is an unofficial platform, wherein trading starts after the announcement of the IPO price band. The trading will continue till the listing of IPO shares. The listing will most likely start by July 27.

For more such updates, keep watching this space!

3 Replies to “Zomato IPO opens next week. GMP, expectations, and what lies ahead”

  1. Thanks for supporting your time to post such an interesting & useful content.Thank you so much, I appreciate your work.

  2. Thank you for sharing This knowledge. Excellently written article., if only all bloggers offered the same level of content as you, the internet would be a much better place. Please keep it up!..

Leave a Reply

Your email address will not be published. Required fields are marked *