Food delivery giant Zomato IPO will open for subscription on July 14
Zomato, an online food delivery service, will begin accepting subscriptions for its initial public offering (IPO) as early as next week. This is one of the year’s most anticipated IPOs, and the largest in over a year. Zomato IPO will be open for subscription till July 16.
ZOMATO IPO, PRICE BAND AND LOT SIZE
Zomato’s public offering of Rs 9,375 crore includes a fresh issuance of equity shares worth Rs 9,000 crore and a Rs 375 crore offer for sale (OFS) by its largest shareholder, Info Edge India Limited.
After consulting with merchant bankers, Zomato decided on a price 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 want after that.
The minimum bid for the IPO at the higher price band of Rs 76 per share, based on the minimum lot size, will be Rs 14,820. It should be noted that qualified institutional buyers have been allocated up to 75% of the total public offering, retail investors have been allocated 10%, and non-institutional investors have been allocated 15%.
The online food delivery giant plans to utilise the funds raised from the IPO for funding organic and inorganic growth initiatives and other general corporate purposes.
FINANCIALS & OTHER KEY DETAILS
Given the company’s strong growth over the years, Zomato’s IPO is expected to do well. Over the last few months, the company’s revenue has risen rapidly across all of its business verticals, but it lost money in FY21. While the company generated Rs 1,367 crore in revenue in the first three quarters of FY21, higher expenses resulted in a Rs 684 crore loss.
From Rs 1,398 crore in FY19 to Rs 2,743 crore in FY20, the food delivery giant’s revenue increased by 96 percent. Its business has slowed as a result of the pandemic, but analysts are optimistic about the company’s future, given that it, along with rival Swiggy, is one of the most dominant players in the food delivery segment.
The company’s premium subscription programme ‘Zomato Pro’ has also done well, with over 1.4 million subscribers and over 25,000 Pro restaurants as of December 31, 2020.
Info Edge is the largest shareholder with 18.68 per cent pre-offer equity stake, followed by Uber BV (9.19 per cent), AliPay Singapore Holding Pre Ltd (8.39 per cent), Antfin Singapore Holding (8.26%), Internet Fund VI Pte Ltd (6.04 percent), SCI Growth Investments II (6.03 percent), and Deepinder Goyal (5.55 percent) and a few others.
