Zomato IPO issue price: The price band of the food delivery company’s IPO has been fixed at Rs 72-76. According to SEBI rules, it will be listed by the end of this month. According to market sources, it can be listed on July 27.
The company’s issue will open on July 14 and close on July 16. The company will issue a fresh issue of Rs 9000 crore while shares worth Rs 375 crore will be sold in the offer for sale. The company’s biggest investor is Info Edge, which is selling its stake in the offer for sale.
Info Edge was earlier going to sell shares worth Rs 750 crore but later it reduced it by 50 percent to Rs 375 crore. Sixty-Five lakh shares have been kept in reserve for the employees of the company. Zomato’s business is growing rapidly. The company’s orders were 3.06 crores in the Fiscal Year 2018, which increased to 40.31 crores in Fiscal Year 2020.
The company’s average order value was Rs 279 in the Fiscal Year 2020 which increased to Rs 398 in 9 months of Fiscal Year 2021. During this, the discount has come down from Rs 21.7 to Rs 7.3.
In the last few months, Zomato’s earnings have grown rapidly. Its income in the first three quarters of FY 2021 was Rs 1367 crore.
Meanwhile, curiosity among investors has increased regarding Zomato’s IPO. The premium of this stock has increased by 20 percent in the gray market. According to analysts, Zomato has benefited a lot from the restrictions related to Covid-19. The company’s revenue is expected to increase in the coming quarters.
Zomato is one of those IPOs that investors are eagerly waiting for. This IPO will be a litmus test for domestic startups that are looking to launch an IPO. It is one of the largest startup companies in the country with investments from well-known private equity firms like Tiger Global Management and Fidelity.