Zomato, the online meal delivery service, launched its Initial Public Offering (IPO) on July 14. The shares will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) both. Customers, restaurant partners, and delivery partners are all connected through the company’s technological platform, which serves their various demands. Customers utilise the company’s platform to find and book restaurants, read and write customer reviews, see and upload images, order meal delivery, book a table, and make payments. Zomato has been the favourite delivery partner for all hunger needs.
Zomato’s unlisted shares have been noticed to be going up and the company making huge profits. If you are someone who loves to trade then further information should be of your interest and priority knowledge for investing in this share.
Zomato operates in four business segments: meal delivery and eating out, as well as a B2B ingredients procurement platform called Hyper pure and a consumer reward programme called Zomato Pro. Revenue drivers and monetisation models differ by segment.
Investors and experts remain bullish, as the company’s unlisted shares are available in the grey market for a premium of 26% ahead of the public offering. It should be noted that the grey market is an unofficial share trading platform known as the Unlisted Market for Unlisted Shares. Unofficial trading begins on this platform after the price band for an IPO is announced and continues until the shares are formally listed on stock exchanges. According to data available on IPO Watch and IPO Tracker, Zomato Unlisted share price was trading at a premium of Rs 16-20 a share on the upper IPO price band of Rs 76, a maximum of 26% premium.
Zomato Unlisted Share Price:
The Rs 9,375 crore IPO includes a fresh issuance of equity shares worth Rs 9,000 crore and a Rs 375 crore offer for sale (OFS) by Info Edge India Limited, the company’s largest stakeholder. After consulting with merchant bankers, Zomato decided on a pricing range of Rs 72-76 per equity share for the IPO. Investors can buy as few as 195 equity shares and as many as they like after that. At the higher price band of Rs 76 per share, the minimum bid for the IPO will be Rs 14,820.
At the higher price band of Rs 76 per share, the minimum bid for the IPO will be Rs 14,820. Qualified institutional buyers will receive at least 75% of the total public offering, with retail investors receiving up to 10% and non-institutional investors receiving the remaining 15%. A total of 65 lakh equity shares have been set aside for firm personnel.
Zomato has proven to be a boon to most working professionals who lead fast-paced lives, as well as ordinary folks who stay at home. According to an analyst, Zomato serves cuisine that is freshly made, which is something that many Quick Service Restaurants (QSR) lack. “In December 2020, a comparable firm, DoorDash Inc, was offered on the New York Stock Exchange; the issue price was $ 102, and the stock was listed at a premium of 78%; its market price reached $205.97 on February 19, 2021. We can see a similar post on Zomato with its performance and growth.
It should be brought to highlight that Zomato intends to use the proceeds from the IPO to fund organic and inorganic growth activities, as well as other general business reasons. The banks managing the IPO sale are Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities, BofA Securities and Citigroup Global.
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