The popular Indian multinational food delivery company, Zomato has gone public and is creating buzz among the investors. Zomato’s initial public offering (IPO) has been opened for public subscription on Wednesday, July 14, 2021. Online food delivery is quite popular these days and companies involved have been enjoying significant growth over the years.
Zomato will now become the first delivery platform and Indian unicorn startup to be listed on the stock market. With the IPO, the company will boost the market valuation by a whopping $9 billion. Zomato is currently competing with Swiggy for market share after acquiring rival Uber Eats’ business in India. The company has been consistently gaining market share in India over the years.
Like several other companies, Zomato also suffered disturbance in business due to the coronavirus pandemic. The business reportedly plunged to the lowest during the first quarter of 2020. However, the company quickly rose after the number of online orders significantly increased in the other quarter of 2020. The gross order value in Q3 2020 was the highest the company has ever achieved
Zomato IPO Price Prediction and More
The restaurant aggregator announced that it aims to raise Rs 9,375 crore through the IPO. Zomato’s IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by the current investor, Info Edge. However, the company previously proposed Rs 8,250 crore while filing preliminary documents with Sebi. Sebi approved the food delivery company to float the IPO last week.
Investors can buy the subscription at a price of ₹72 to ₹76 per equity share until Friday, July 16, 2021. Zomato’s IPO market lot size is 195 shares, which means the retail individual investor can apply a minimum of 195 shares worth ₹14,820. Furthermore, the individual investor can buy up to 13 lots, maximum of 2535 shares worth ₹192,660. The food delivery company reserved 75 percent of IPO for qualified institutional buyers (QIBs).
Zomato IPO will have 15 percent reserved for non-institutional investors (NIIs). The individual retail investor will have the remaining 10 percent of the much-awaited IPO. Zomato IPO will potentially list on Jul 27, 2021, while the allotment will be finalized on July 22, 2021. The shares will be credited to the DEMAT account on July 26, 2021.