Zomato’s initial public offering will be open for subscriptions from Wednesday (July 14), in what could be one of the largest IPOs of an Indian startup in the recent past. Overall, Zomato’s IPO is the 27th public issue this year. With its IPO, the food delivery giant is planning to raise Rs 8,250 crore. The homegrown startup is backed by investors such as Ant Group, and competes neck to neck in India’s food delivery segment against Swiggy.
1. Zomato IPO share price
Share market investors will be able to subscribe to the shares at Rs 72-76 apiece. However, investors will have to subscribe to shares in multiples of 195. Investors will be able to subscribe to Zomato IPO from July 14 to July 16.
2. Zomato’s financials
In the financial year 2020, Zomato’s IPO jumped more than 2x to Rs 2,960 crore as compared to last fiscal. However, the startup’s earnings before interest, taxes, depreciation and amortisation (EBITDA) was around Rs 2,200 crore loss in FY20.
3. Where Zomato will use the funds?
With the heating competition in the food delivery space, Gurugram based startup is aiming to use the IPO proceeding for organic and inorganic growth in the coming years.
4. Zomato IPO size
Zomato’s IPO is sized at Rs 9,375 crore. The IPO comprises a fresh issue of equity shares worth Rs 9,000 crore while the startup’s investor Info Edge (India) Ltd will be selling its shares worth Rs 375 crore.
5. Should you subscribe to Zomato IPO?
Share markets experts have a mixed response to Zomato’s IPO. Those who are recommending the share because of the evolving nature of the food delivery business in India. The duopoly in India’s food delivery also makes the IPO interesting.
On the other hand, several investors are suggesting that Zomato’s valuation appears to be demanding at the current share price of Rs 76.