Zomato IPO: Shares trade with strong premium in grey market on SEBI’s go-ahead to public issue

Zomato is India’s house grown unicorn firm and considerably some of the awaited IPO.

Zomato, on-line meals supply platform, shares had been buying and selling with a robust premium within the main market, after the corporate obtained SEBI’s go-ahead to lift Rs 8,250 crore by way of an IPO. Information Edge, a key shareholder of Zomato, has diminished the dimensions of its supply on the market (OFS) by half to Rs 375 crore from Rs 750 crore deliberate earlier. On Tuesday, Zomato shares had been seen quoting at a premium of Rs 16.5 apiece, over the tentative worth band of Rs 70-72 a share. The shares had been buying and selling at Rs 88.5 apiece, implying a premium of 23 per cent over the tentative IPO worth, based on the individuals who deal in shares of unlisted firms.

Zomato is India’s house grown unicorn firm and considerably some of the awaited IPO. There’s lots of zeal on D-Avenue even earlier than the IPO announcement. “Market is anticipating a worth band of Rs 70-72 for the Zomato IPO. The itemizing of the unicorn startup will likely be extra in focus with respect to its valuations because the market will in all probability not worth such firms historically,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, advised Monetary Categorical On-line. Doshi added that not too long ago listed DoorDash Inc. on NYSE has given stellar returns to its traders whereas India remains to be in its nascent stage on this sector the place there are immense progress alternatives.

Zomato has proved to be a blessing for many of the working professionals who’ve a fast-paced life or for the conventional individuals who stay at house. Zomato delivers meals that’s freshly ready which many Fast Service Eating places(QSR) lack, stated an analyst. “The same firm, DoorDash Inc, was listed on NYSE in December 2020, the difficulty worth was $ 102 and inventory listed at a premium of 78 per cent, its market worth reached $205.97 on 19 February 2021. We anticipate the same response for Zomato,” Rajesh Singla, Founder & CEO of pre-IPO consultancy agency Planify India, advised Monetary Categorical On-line.

Naukri.com’s mum or dad firm, Information Edge holds a stake of about 18.55 per cet within the meals supply platform. The supply contains a recent difficulty value over Rs 7,000 crore. In February this yr, Zomato had raised $250 million (over Rs 1,800 crore) in funding from Tiger International, Kora and others, valuing the web meals ordering platform at $5.4 billion. Zomato’s public difficulty is without doubt one of the most awaited IPOs of this yr.

Kotak Mahindra Capital Firm, Morgan Stanley India Firm Pvt Ltd and Credit score Suisse Securities (India) Pvt Ltd are the worldwide coordinators and guide operating lead managers to the difficulty.

(The inventory suggestions on this story are by the respective analysis analysts and brokerage companies. Monetary Categorical On-line doesn’t bear any duty for his or her funding recommendation. Capital markets investments are topic to guidelines and rules. Please seek the advice of your funding advisor earlier than investing.)