Zomato IPO: GMP, Issue Date, Price, Review & Details

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Zomato IPO Highlights:

  • Zomato’s much-awaited IPO opens on July 14
  • Zomato revenue was Rs 487 crore in 2017-18, which increased to Rs 2,743 crore in 2020-21
  • The price for an IPO is set at Rs 72 to Rs 76 per share.
  • Zomato IPO Grey market premium was running from Rs 18 to 20. GMP has come down to Rs 10 to 10.5 i.e. 12-15%

Food delivery company Zomato’s IPO is opening tomorrow i.e. on July 14, So tomorrow is a very important day for investors as a public issue. Zomato ipo will open, which will be open till July 16. Through it, the company is set to raise Rs 9,375 crore.

The company has kept the price band for the IPO at Rs 72-76. The issue will have fresh shares worth Rs 9,000 crore while the company’s shareholder Info Age will sell 375 crore shares. Invest19 Founder and CEO Kaushalendra Singh Sengar said analysts are analyzing the company on the basis of financials. There is a possibility of Amazon entering the food delivery business, due to which Zomato will have to infuse more cash. Due to this the company is not likely to make profit at the moment.

About Zomato

Zomato IPO
Zomato IPO

Zomato was launched in 2008 by Dipendra Goyal along with his office friend Pankaj Chadda. One day it happened that Deepender went to the office as usual and was waiting for the menu in the canteen. He realized that the menu was taking too long.

He later scanned the menu and posted it on the Internet, and people liked it a lot. From here he came up with the idea of ​​such a website, in which people can get information about the surrounding restaurants. Dipendra started Foodibe in 2008 with Pankaj, which was renamed Zomato in 2010.

Zomato’s business is spread across many leading cities in the country, including Delhi, Mumbai, Bengaluru, Chennai, Pune and Kolkata. Apart from this, Zomato’s services abroad are in UAE, Philippines, South Africa, New Zealand, Turkey, Brazil, Indonesia, Portugal, Canada and Ireland. Apart from this, Zomato’s business is also spread in Australia and US.
Financials and Investors 

financial profile of the company, which has a debt of Rs 2,400 crore on Zomato , its total revenue was Rs 487 crore in the financial year 2017-18, which increased to Rs 2,743 crore in 2020-21. The company is currently at a loss of Rs 2,385 crore. The company has decided to bring a public issue for debt repayment and general corporate needs and has applied to market regulator SEBI.

After approval, Zomato has chosen July 14-16 for the IPO launch. According to the exchange filing, the price for an investment in an IPO is set at Rs 72 to Rs 76 per share. There will be a lot of 195 shares, which can be applied for. However, a retail investor can only apply for a maximum of 13 lots. As per SEBI rules, you cannot invest more than Rs 2 lakh.

Rs 4,200 crore collected from anchor investors
According to media reports, the company raised 60 560 million (Rs 4,170 crore) from anchor investors just a day before the launch of the IPO. Institutional investors have paid Rs 76 per share for this.

Info Edge
currently has the largest stake in the company in Zomato with Info Edge’s investments, including Cora Management, Tiger Global Management, Fidelity. The largest stake (18.4%) in the company is held by Info Edge, which will sell shares worth Rs 375 crore through an offer for sale.

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