Zomato IPO to open for subscription in July 14; Know price band
The wait for the IPO of online food delivery platform Zomato Ltd is over. Its IPO will open for subscription on July 14 and close on July 16. The price band for this has been fixed at 72-76 per share. Zomato has got approval from market regulator SEBI last week to raise funds through IPO. A minimum of 195 equity shares will have to be bid for and thereafter bids can be placed in multiples of 195.
The platform Zomato plans to raise 9375 crores according to the price band of Rs 72-76 per share through the issue. The issue offer comprises fresh equity shares and an Offer for Sale (OFS) by Info Edge, the parent company of Naukri.com. The company’s investors include Info Edge, Sequoia, Ant Financials and Uber.
In the company’s mega IPO, 75 per cent is reserved for qualified institutional buyers (QIBs) and 15 per cent for non-institutional investors (NIIs). 10% of the public issue is reserved for retail investors. In the IPO, 65 lakh equity shares have been reserved for the employees of the company.
In the financial year 2020, Zomato had an income of Rs 2742 crore. The company earned Rs 1367 crore during the pandemic and still the company Zomato is running in loss.
Foreign brokerage and research firm Jefferies said in early 2021 this year that Zomato’s IPO would be the first significant internet listing in India. According to Jefferies, food delivery continues to be a strong base for the company with more than 80 per cent of its revenues, although now there could be stiff competition in this field. According to Jefferies, only two companies, Zomato and Swiggy, are in possession of food delivery in India, but competition may increase soon.
