Zomato is the talk of the town since the time it has decided to raise funds through the public issue. The company is the leading online foodservice platform. Zomato is looking to raise Rs. 9,375 crore through the public issue. The initial public offer (IPO) opens on 14th July and closes on 16th July. The price band of the issue Rs. 72 – Rs. 76. Zomato IPO is the largest IPO in India since the beginning of 2021.
Zomato was found in 2008 by Deepinder Goyal, Gurav Gupta and Pankaj Chaddah. As of March 2021, it was present in 525 cities of India with 3,89,932 active restaurant listings. As per Annie’s estimates, its mobile application was the most downloaded application for the last three fiscals in the food and drinks section. The company sees a huge opportunity in India and is focusing on increasing the value of its stakeholders.
What works in the favor of the company is its strong presence across India. It is one of the strongest equity brands in the country. With a strong network of restaurants and delivery partners, the company is expected to do well in the coming years. The company is managed by strong and professional promoters who have never been under the scanner of SEBI for any non-compliance or any such matter.
What does not work in the favor of the company is its valuations and profitability. The company has been posting losses constantly and has a negative EPS for the last three fiscals. Even after delivering heavy operational losses, the company has a positive NAV. This is because of the heavy premiums collected on equity placements. The anchor investor list of the company has been impressive.
The investors applying for the Zomato IPO may take their investment call after considering the above factors. For other details and insights into the stock market, you may subscribe to NTA. We aim to enhance the financial literacy of India and hence all the content on our page is free.
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