NewDelhi: Zomato is all geared up for its upcoming initial public offering (IPO) that is expected to help the food delivery giant mop up roughly around $1.25 billion. The IPO is likely to open for subscription from July 14.
Zomato was founded in 2008. In India, the startup rivals Swiggy and Amazon. At present, the company is valued at around $4.2 billion, according to estimates by research firm RedSeer.
Zomato is scheduled to hold a virtual press briefing at 0630 GMT on its IPO.
Morgan Stanley, Credit Suisse and Citigroup are among the lead book-running managers for the IPO.
Experts are suggesting that the IPO could be a blockbuster on Indian bourses. If you’re planning to subscribe to Zomato’s IPO, you can take note of the following five things:
1. Zomato IPO date
Zomato is planning to open its IPO for subscription from July 14. You’ll get three days to subscribe to the IPO from July 14 to July 16.
2. Zomato IPO price
Zomato is reportedly planning to price its share at around Rs 72 to 76 apiece. The lot available for a subscription could be worth anywhere around Rs 15,000.
3. Zomto financials
In the first three quarters of the financial year 2020-2021, Zomato’s revenue stood at Rs 1,367 crore. Overall, the food delivery giant made a loss of Rs 684 crores during the same period, which means that the firm is yet to turn profitable.
4. Chinese funding
Zomato is backed by China`s Ant Group. However, before the IPO, Ant Group has reduced its stake in the food aggregator due to the rising tensions between India and China.
According to Zomato’s draft prospectus, Ant Group now owns 558.9 million shares, down from a total of 777.5 million shares a year ago. Also Read: Big jolt to Indian government! Cairn Energy freezes 20 state-owned properties in France: Report
5. Successful IPO of food delivery companies
In the US, food delivery startup DoorDash recently a blockbuster IPO. The offering had strong demand from investors worldwide. Taking cues, we can expect that Zomato might be able to repeat the success of DoorDash in India.
Bureau Report
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