News Update

Zomato To Open IPO Next Week

• ByStartupStory     |    July 10, 2021

Zomato to open IPO next week, on Dalal Street as it is set to open for subscription on July 14. It has set the offer price for its public offering at ₹72-76 a share. The offer size will likely be as much as ₹9,375 crore, making it the second largest IPO since SBI Cards and Payment Services’ ₹10,340 crore offer last year in March. The issue, which closes on 16 July, comprises an offer for sale of ₹375 crore by the company’s early investor, Info Edge and a fresh issue worth ₹9,000 crore. The stock is likely to list on the exchanges on 27 July. Zomato will command a premium to global peers including Meituan, Doordash, Delivery Hero.

Abhay Doshi, founder of UnlistedArena.com said, ”The hunger of such tech-driven IPO is very high which will ensure digestion of such IPOs. Such companies will not be valued as per the traditional valuation methods. In spite of such companies posting losses, they are valued even more than some traditional giants,” further adding, “The ability to reach at doorstep of any customer is a great strength which may open the doors of new business avenues. However, such disruptive businesses are double edged sword, as entry of any big pocketed player may pose serious threat to the business. For a longer term view we need to constantly track company’s performance, acquistions, expansions and whether the company is heading on the path of profitability on continuous basis.”

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