On July 14th, 2021, Zomato opened its Initial Public Offering (IPO) worth Rs. 9,375 crores. It carries a price band of up to 76 per share. Additionally, the offer is applicable till the 16th of July, 2021.
The long-term objective of the online food delivery, Zomato, is to raise 9,375 crores via IPO that acquires Rs 9,000 crore as fresh equity shares and offer for sale (OFS) worth Rs 375 crore, handled by Info Edge India.
In April, Zomato filed the legal documentation with Sebi( market regulator channel) and got the approval just before a week to release the IPO.
It is fascinating to know that Zomato is the first startup to raise public funds during the pandemic. The online food delivery company has reached so far in terms of success in past years. Hence, it can expect investors to come and infuse their money in Zomato IPO.
How is Zomato IPO doing?
Zomato IPO shares opened on Monday for both foreign and domestic investors, and just after a day, it all got sold. There were a lot of speculations about buying Zomato IPO, but people seem interested in it.
Things to keep in mind before you start investing in Zomato IPO
- Zomato was doing tremendously well in the past few years, but currently, it is in the loss. It suffered a loss of 1,010.51 crore, 2,385 crore, and 8,16.42 crore in subsequent years of 2019, 2020, and 2021. So, it may be questionable to invest in a loss-making company.
- The food delivery company has reserved a sum of 65 lakhs shares for its company’s employees. The ongoing sale has a share of Rs 375 crore, which comes with a sale offer of Rs 9000 crore via Info Edge India.
- Zomato made a total of Rs 4197 crore on Tuesday from the anchor investors. Moreover, they gave 55.22 crore equity shares to anchor at Rs 76 per equity share. Also, the anchor investors alone occupy 45 percent of the total Zomato fund size.
- The shares will be open for allocation on July 22nd, and the BSC and NSE will list the stock by July 27.
- The food delivery company consulted with top merchant bankers and decided on a fixed cost band at Rs 72-76 per equity share.
Should you invest in Zomato IPO?
The experts suggested that investing in the food delivery company might be risky as Zomato is going through a rough phase financially. Even Sebi records stated that Zomato fails to meet the profitability data.
Also, Zomato’s potential competitor, Swiggy, may raise the market by challenging Zomato in the future and pull out the survey from the competition regulating bodies.
Future of Zomato IPO
The IPO by Zomato is the talk of the town. The company has set a fixed amount of Rs 72-76 per share that comprise the face value worth Rs 1. Also, the company is aiming to generate Rs 9,375 crore in the offer. Zomato’s share gets sold out in one day, which shows the company’s market value among the nation is not that bad. Let us see how far the scenario goes in terms of profit. For more information please visit.
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