Zomato IPO next week; check price band, lot size, bid details of Rs 9,375-cr public issue

A lot awaited Zomato preliminary public providing (IPO) will hit Dalal Road on July 14 subsequent week.
(Picture: REUTERS)

A lot awaited Zomato preliminary public providing (IPO) will hit Dalal Road on July 14 subsequent week. The On-line meals supply platform is trying to increase Rs 9,375 crore by way of the difficulty, on the worth band of Rs 72-76 per share. The supply will include a recent difficulty of fairness shares and a proposal on the market (OFS) by Naukri.com’s mum or dad firm Data Edge. The meals supply large can be the primary of many Indian tech startups to listing on the inventory exchanges. The corporate counts Ant Financials, Data Edge, Sequoia, and Uber as a few of its buyers and doesn’t have a promoter. 

Zomato’s mega IPO could have 75% of the portion reserved for certified institutional patrons (QIB) whereas 15% is reserved for non-institutional buyers (NII). Solely 10% of the general public difficulty is open for retail buyers to bid, translating to merely Rs 937 crore. Traders can bid for the difficulty within the worth band of Rs 72-76 per fairness share of face worth Re 1. Bids may be made for at least 195 fairness shares and in multiples thereafter. The IPO may even have 65 lakh fairness shares reserved for workers of the corporate. Zomato obtained SEBI’s nod within the earlier week.

The meals supply platform will obtain Rs 9,000 crore from the IPO. In accordance with the RHP filed by Zomato, the corporate will use Rs 6,750 crore for funding natural and inorganic development initiatives whereas the remaining shall be used for basic company functions.  Within the monetary yr ending March 2020, Zomato’s whole revenue stood at Rs 2,742 crore. In the course of the pandemic, the corporate’s revenue was recorded at Rs 1,367 crore. Zomato continues to stay a loss-making entity as of now. 

Within the latest spherical of fundraising, Zomato was valued at $5.4 billion post-money. Tiger World, Constancy, and Kora Administration had been among the many newest buyers in Zomato pumping in $250 million.

“Zomato IPO would mark the primary significant Web itemizing in India. With >80% contribution to revenues, meals supply is the bedrock, a two-player market now though extra competitors is feasible,” mentioned international brokerage and analysis agency Jefferies earlier this yr. The brokerage agency highlighted that out of the entire meals consumption in India, which is sort of 1 / 4 of the nation’s GDP, simply 10% is on meals providers. This compares with greater than 50% spends in China and the US. Following the consolidation wave, meals supply is now a two-player market with broadly comparable shares for Zomato & Swiggy, they added.

As the corporate tried to realize extra market share and broaden operations, volumes are set to extend for Zoamto in addition to its rival Swiggy. With this, in accordance with a latest report by CLSA, profitability has taken a middle stage within the trade as each the businesses attempt to enhance their unit economics.