IGI Logo

Below are Quote on Zomato’s mega IPO: 10 points to know By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

The much-awaited IPO of Zomato opened for subscription on 14 July 2021 and will close on 16 July 2021. The company aims to raise Rs. 9375 crores through its initial public offering.

The Zomato IPO price band will be Rs. 72 – Rs. 76/share. The offer worth Rs. 9375 crores, comprises new issues and OFS by existing stakeholders. In such a case, this initial public offering will turn out to be the second-biggest IPO in the past 4 years.

Did you know?

SBI Cards and Payment Services raised over Rs. 10,355 crores in IPO, making it the largest one in the last 4 years. Since the 2000s, Coal India’s IPO is the largest at Rs. 15200 crores, launched in 2010.

Take a look at these pointers below to get all burning questions about Zomato IPO price and more answered.

1. Objectives of IPO

Zomato intends to use the net proceeds from its upcoming IPO to achieve these objectives –

* Fund organic and inorganic growth tactics

* Account for general corporate purposes

2. Zomato IPO details

The Zomato IPO launch date is finalised on 14 July, and it’ll close on 16 July. Take a quick look at this table below for Zomato IPO details so far –

3. Zomato IPO dilution

This Initial Public Offering will witness a dilution of around 10% to 15%. It will be mostly through the fresh issuance of shares and an offer for sale (OFS) by Info Edge India Ltd., an early investor.

4. Anchor investors and promoters

Many reputed asset management firms and some noteworthy existing investors such as Temasek are likely to be anchor investors in this upcoming IPO. You should note that unidentifiable promoters manage this company. However, it is professionally managed per the Companies Act and under ICDR Regulations.

5. Changes in OFS

Recently, Info Edge reduced its offer for sale in size in this upcoming IPO by half. Previously, it had planned to offer shares worth Rs. 750 crores for sale in Zomato IPO.

6. Company financials at a glance

Here’s a quick summary of Zomato’s financials from 2018 to 2021.

7. Existing investors

Co-founder Deepinder Goyal holds 5.51% shares in the company. Take a look at this table below to find out who are some of the other existing and noteworthy investors of Zomato –

8. Company’s merchant bankers

Citigroup Global Markets India Pvt Ltd and BofA Securities India Ltd will act as the merchant bankers for this upcoming Zomato IPO.

9. Global coordinators

These following entities will act as the book-running lead managers and global coordinators of the IPO issue –

* Bank of America Merrill Lynch

* Credit Suisse Securities Pvt Ltd. (India)

* Citigroup Global Markets India

* Kotak Mahindra Capital Company

* Morgan Stanley India Company Pvt Ltd

10. Company strength

Are you wondering what makes Zomato a robust play in the market today?

Check out its most prominent competitive strengths to determine whether to consider this play or not –

* One of the leading and most popular food services delivery platforms.

* Operates through a strong network of 389932 restaurants. In addition, it has a large team of 169802 delivery partners.

* A well-connected and widespread on-demand hyperlocal network.

To Read Complete Report & Disclaimer Click Here

Above views are of the author and not of the website kindly read disclaimer