The date of the IPO of food delivery company Zomato has been fixed. The issue of the company will open from July 14 to 16. Zomato's IPO will have a primary sale of Rs 9,000 crore, while there will be a share offer for sale of Rs 375 crore. Offer for sale means other shareholders will sell their shares in the company. Know everything about Zomato IPO here.
It is an online restaurant aggregator. It delivers food and other items from the restaurant to the customers. It also provides photos and reviews of restaurants and hotels. It also does marketing for the restaurant.
Its total revenue was Rs 487 crore in the financial year 2018 which increased to Rs 2,743 crore in 2020-21. It is in loss of Rs 2,385 crore.
It will be open from 14 to 16 July. During this time you can buy its shares.
Its price has been kept at Rs 72 to 76. However, when you apply for Rs 76, your chances of getting shares will be high.
You can apply for 195 shares or in multiples thereof. However, a retail investor can apply for a maximum of 13 lots. As per SEBI rules, you cannot invest more than Rs 2 lakh.
In this, a share of Rs 933 crore is reserved for retail. That is, 10% of the total IPO will be available. QIBs will get the highest 75%. Employees will get 65 lakh shares.
Allotment will be done on 22nd July and refund will be done on 23rd July. That is, the shares will come in your Demat account by July 26.
You can check for this from Link time India or the website of the company or the website of the stock exchange.
After allotment on 26th, it will be listed on 27th July.
The company will spend Rs 5,625 crore from the IPO money to grow the company and buy other companies.
Zomato recently raised money by selling shares at a price of Rs 55-60. Then its valuation was 40 thousand crores. Right now it is Rs 56 thousand crores.
The face value of its shares will be Rs. 25% share is reserved for Retail and High Net Worth Individuals i.e. HNIs. According to the upper value i.e. 72 rupees, the valuation of the company is 56 thousand 200 crore rupees. Zomato had submitted a draft to SEBI in April for the IPO and it was approved last week.
Its other shareholders are Uber, Alipay, Antfin Singapore, Internet Fund, SCI Growth Investments and its co-founder Dipinder Goyal. All hold more than 6-6% stake. By the way, there is not much demand for its shares in the unlisted market i.e. grey market. It is trading only around Rs 78 in grey market. That is, there is business at 10-12% more. From this, it is also not expected to have good listing and profit.
According to the exchange filing, Zomato has investments from Quora Management, Tiger Global Management, Fidelity and InfoEdge. In this, the largest stake (18.4%) is held by Info Edge, which will sell shares worth Rs 375 crore through an offer for sale (OFS). The company was earlier going to bring OFS of Rs 750 crore in the issue of Zomato.
In a piece of information given to the exchange on July 4, Zomato said that the company has reduced the size of the offer for sale. Info Edge wants to raise Rs 375 crore through offer for sale. The company had filed a red herring draft prospectus with SEBI in April this year for the IPO.
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