Everything you need to know about the Zomato IPO

Stocks IPOs
1

The much-awaited IPO of Zomato is finally here. The Rs. 9,375 crore public offering of Zomato comprises fresh issuance of equity shares worth Rs. 9,000 cores and an offer for sale of Rs. 375 crores from shareholders Info Edge, which is listed on exchanges as Naukri.

About the company:

Zomato is one of the leading online Food Service platforms in India in terms of the value of food sold with a presence in 525 cities in India and 23 countries outside, with 389,932 Active Restaurant Listings as of March 31, 2021.

The company offers its services across B2C (Business to Consumer) and B2B (Business to Business) segments. Its B2C offerings include food delivery and dining-out services. While the B2B offerings include Hyperpure through which they supply high-quality ingredients and kitchen products to restaurants) and Zomato Pro, a customer loyalty program.

Financial Snapshot:

Financial Year Ended Assets (â‚ą Crores) Revenue (â‚ą Crores) Loss for the year (â‚ą Crores) EPS (â‚ą)
March 2019 3,413.41 1,397.72 -1,010.51 -2.57
March 2020 2,900.38 2,742.74 -2,385.60 -5.42
March 2021 8,703.54 2,118.42 -816.43 -1.51

Zomato vs Food Delivery Industry

Zomato seems to have grown 7x since 2018 compared to the 3.6x growth of the overall food delivery industry:

Growth Potential

Zomato has been growing at a very fast pace but how much headroom does the company have? This table comparing the total addressable markets in India, the US & China may give us some indication:

image
image948Ă—495 47.5 KB

For more information, you can refer to the IPO Prospectus filed by the company.

Can a loss-making firm launch an IPO?

Yes, it can. However, the portion of the IPO reserved for the retail category changes from the usual 35% to 10% of the overall issue size. We’ve covered the details on this post.

Offer details

Fresh issue of up to 1,250,000,000 at the upper end of the price band aggregating to â‚ą 9,000 crores at the upper end of the price band.
Offer for sale of 52,083,333 shares at the upper end of the price band by Info Edge aggregating to Rs 375 crores

Offer breakdown

QIB - 75%
NIB - 15%
Retail - 10%
Employees will have a quota of shares worth R 49 crores

IPO Schedule:

Event Date
Issue Period 14th July 2021 to 16th July 2021
Price Range â‚ą 72 - 76
Minimum Bid Quantity 195
Finalisation of Allotment 22nd July 2021
Credit of Shares 22nd July 2021
Listing Date 23rd July 2021
Mandate End Date 3rd August 2021

How do I apply to the Zomato IPO?

You can apply for the Zomato IPO using any supported UPI app by following two steps:

  • Enter your bid on Console.

  • Accept UPI mandate on your phone.

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

10 Likes
2

Most of the Indian unicorns are huge loss-making companies despite increasing revenue.

No doubt it will be oversubscribed by huge numbers, remains to be seen when will they actually be profitable.

This is just the DRHP. It won’t include any details such as price, number of shares or any dates. This all will announce later.

3

I like Swiggy better than Zomato. :sweat_smile:

From service, innovation - started Grocery delivery and Swiggy Genie service during lockdown where delivery boys can pick/ deliver stuff from point A to B. And even about branding and marketing, Swiggy is way ahead. Softbank had two options to invest in - Zomato and Swiggy. It chose the latter one recently. Info Edge is selling its stocks. Sanjeev Bikhchandani must be thinking something.

Disclaimer: Since covid began, I haven’t eaten any outside food. It’s been a year-long maraton (and counting) of daily cooking.

3 Likes
4

Explain very nicely

5

What happened to that influencer vs Kamraj delivery boy harassment case? :thinking:

1 Like
6

The IPO is still a couple of weeks away but grey market activity is so strong that it’s trading at a premium of Rs. 15-17 even though the price band is still unconfirmed. :exploding_head:

1 Like
7

haven’t seen hype like this for any IPO… :joy::joy:

8

The hype is waning. The GMP (Grey Market Premium) is just Rs. 8 now.

9

Zomato IPO was subscribed only 38 times. Given the hype, thought it would easily beat IRCTC’s 111 times subscription.

10

Zomata is 20 times bigger IPO than IRCTC with this subscription its around 700X subscribed if you want to do apple to apple comparison which is actually Phenomenal !!!

11

right… IRCTCs subscription demand would’ve been around 70000 crores given their issue size… Zomato on other hand… it’s well over 2 trillion… which is astonishing…

12

If i had applied directly through say HDFC Securities. Would i still habe to accept the mandate request on my BHIM app.

13

You cannot make multiple IPO applications using same name, demat and PAN account. In such cases all your applications will be rejected.

1 Like
14

Thank you for the clarification @ShubhS9

15

A good and in-depth explanation about Zomato. Whoever has plans of investing in the Zomato IPO can surely read through the post for a clear understanding.

16

I apply for zomato IPO From zerodha, and my bank account also blocked, but in console I do not see any entry. not in ongoing IPO nor in BID HISTORY, TILL MONDAY there is entry for my bid now there is nothing. HOW CAN I understand, What is status of my application ??

17

Where do I check IPO allotment and by what time?

18

The IPO allotment status is supposed to be published by the RTA on the allotment date. Usually, it is released by the end of the day or the next day.

You can check the allotment status on RTA’s website or on the NSE website.

19

Zomato IPO allotment results are out and listing is tomorrow. Anyone who wants to check allotment can check it out

https://www.linkintime.co.in/IPO/public-issues.html

20

Looks like Zomato users skipped their breakfast today. Instead of ordering one plate Idli, they ordered Zomato stock equity delivery :grimacing:

1 Like