The stock of Zomato is listed on the stock exchange today at Rs 115. This is 51% higher than the issue price. That is, investors have got so much profit. Later it was trading at Rs 138. However, the stock also made a low of Rs 114. Its market cap has crossed Rs 1.08 lakh crore.
Earlier it was to be listed on July 27. The company has listed it in advance. Its premium in the gray market was trading up 30-35% on Thursday. By the way, all the shares that have been listed in the last year have given good returns to the investors after the listing and after that. The sentiment in both the primary and secondary markets is currently in a strong uptrend.
The price band for investment in Zomato's IPO was fixed at Rs 72 to 76 per share. Through this, the company raised Rs 9,375 crore from the market. It got 38 times a response. In this, the share of qualified institutional buyers (QIBs) was filled at 54.71 times, while the share of non-institutional investors was filled at 34.80 times. Retail's share was filled only 7.87 times.
The market capitalization of the company at Rs 76 is Rs 64,500 crore. However, the listing is done at Rs 115, hence its market cap has gone up to Rs 1.08 lakh crore. This is higher than all the listed quick-service restaurant chains in India. Also, it is also higher than the market cap of listed hotels in the country. There are 20 listed hospitality companies in the country and their total market cap is Rs 45,000 crore.
Among the QSR or quick-service restaurant companies, Jubilant Foods has the highest market cap of Rs 41,496 crore, while that of Westlife is Rs 7,990 crore. Burger King has Rs 6,058 crore. Barbecue Nation has Rs 3,324 crore. Similarly, Indian Hotels have a market cap of Rs 17,446 crore among hotel companies. This is the highest. EIH has a market cap of Rs 7,053 crore, Chalet Hotel has a market cap of Rs 3,893 crore, Mahindra Holidays 3,781, India Tourism has a market cap of Rs 3,392 crore, Lemon Tree has a market cap of Rs 3,351 crore.
Zomato's IPO received a total demand of Rs 2.13 lakh crore. This is the third IPO in terms of the highest demand in the Indian stock market so far. Earlier, Reliance Power and Coal India had got the highest demand. The meaning of demand is related to the total amount for which the company got the application. A total of 32 lakh retail applications were received in Zomato, while 47 lakh applications were received in Reliance Power. In the same year, Indigo Paints' IPO had received 30 lakh applications. It was 117 times full.
Since Zomato's IPO size was large, it got a demand of more than 2 lakh crores. Whereas in recent years, the demand for IPOs that have been subscribed up to 200 times has been very low, because of their small size. Zomato has been the first unicorn startup in the country to have brought an IPO. That's why investors were excited about it. However, it has been a consistent loss-making company.
The most surprising thing is that retail investors have not shown much interest in Zomato's IPO. was only 7.87 times full. Whereas in most of the IPOs that have come this year, the share of retail is more than 10 times. An Easy Trip, is filled up to 70 times.
Zomato currently serves 525 cities in the country. It has 3.89 lakh restaurants listed. It has served in 23 countries outside India. The company had revenue of Rs 1,397 crore in the financial year 2018-2019. There was a loss of 1,010 crores on this. In 2019-20, there was a loss of 2,385 crores on the revenue of 2,742. In 2020-21, there was a loss of Rs 816 crore on the revenue of 2,118 crores.
Shares of Happiest Mind have given a gain of almost 8 times in the IPO shares listed last year, which have given excellent benefits to investors. Its IPO came in September 2020 at Rs 166. Now it is trading at Rs 1,491. Root Mobile also brought an IPO in September 2020. It came in at Rs 350 and is currently trading at Rs 2,060. That is, a profit of 4.88 times has been received.
Broking company Angel Broking's IPO has given a profit of 3.15 times. Its IPO came in October 2020 at Rs 306. Now it is trading at Rs 1,271. The issue of Rosary Biotech came in July 2020. After a year, it has given a profit of 1.94 times. Its stock is currently trading at Rs 1,251.
Burger King was a big hit. Its issue came at 60 rupees. In 4 days it had reached Rs 220. However, later it went up to Rs 130 and is now at Rs 175. That is, it has given a benefit of close to 2 times. The issue of MTAR came in March this year. The share price of this IPO, which came to Rs 575, is now Rs 1,495. Gave a profit of 1.60 times. Easy Trip was also listed in March this year. The issue of Rs 187 is currently at Rs 411. That is, there is a gain of 1.20 times. Laxmi Organic also brought the issue in March 2021. It has given the lowest profit of 94%. It is currently trading at Rs 252.
Last year, a total of 38 companies were listed on the stock exchange. Out of this, the share price of 34 companies is trading at a higher price than the price of their IPO. That is, only 10% of the issue has given losses to the investors. Investors are eyeing the issue of Zomato to be listed tomorrow. It has been the least subscribed issue in the recent IPO. It's only 38 times full.
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