If a company wants to issue an IPO, it goes through a series of steps. Most of these steps involve filing documents with various regulatory bodies.
The first major step towards launching an IPO is filing the Draft Red Herring Prospectus (DRHP) with SEBI (i.e. capital markets regulator). This document contains the recent financials of the company, its history, and any other information pertinent to the IPO.
Zomato recently filed its DRHP with SEBI
As Zomato heads toward launching its IPO, you may want to check some of its financials. Here is a summary of its recent financials picked from the DRHP:
|Particulars||Nine-month period ended Dec 2020||Fiscal 2020||Fiscal 2019||Fiscal 2018|
|Equity Share capital (in Rs. crores)||0.031||0.03||0.03||0.03|
|Net worth (Rs. crores)||6,330.07||2,083.10||2,596.75||1,207.85|
|Revenue from operations (Rs. crores)||1,301.34||2,604.73||1,312.58||466.02|
|Loss for the period/year (Rs. crores)||(682.19)||(2,385.60)||(1,010.23)||(106.91)|
|Basic earnings per share||(8,496.65)||(34,121.10)||(16,027.31)||(2,243.76)|
|Diluted earnings per share||(8,496.65)||(34,121.10)||(16,027.31)||(2,243.76)|
|Net asset value per equity share||78,863.30||30,026.70||43,130.82||26,140.47|
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.
When will the Zomato IPO launch?
The timeline of the IPO is yet to be disclosed. Once it is, you’ll be able to check it on this page.
One of the existing shareholders of Zomato is a listed company - Naukri. It will be selling Rs. 750 crores of shares in the IPO. Zomato is planning to raise 7500 crores in form of a fresh issue of shares. This will make the IPO a Rs. 8,250 crore issue.
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:
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, US & China may give us some indication: