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.
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.
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 -
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