Food Delivery giant Zomato is coming up with a mega Initial Public Offering (IPO) on the 14th of July 2021. Zomato's IPO sale will start from 14th July & will close on 16th July.
Price Band & Lot Size
This mega IPO will be for raising 9375 crores. As per the Red Herring Prospectus filed by Zomato, the price Band of Zomato IPO is fixed at Rs. 72-76 per share. One lot of this IPO will consist of 195 equity shares. So a lot will be priced between Rs.14,040 to Rs. 14,820.
Earlier it was expected that the Zomato IPO will hit markets on 19th July but now it's more near on 14th July. This IPO is coming up with a Fresh Issue of 9000 Crores & an Offer for Sale of Rs.375 Crores. One of its promoters InfoEdge will sell its holding shares worth Rs.375 crores. Earlier InfoEdge was planning to sell Zomato's shares worth Rs.700 Crores but now it has decreased the OFS amount by 50% to Rs.350 Crores only.
75% of the total IPO Shares will be reserved for the Qualified Institutional Buyers(QIB), 10% for retail investors, and 15% for Non-Institutional Investors.
65 Lakh Equity shares are kept reserved for Employees of Zomato.
Listing Date
- To meet General Corporate Purpose
- Funding Organic & Inorganic Growth Initiatives
- Market Leader in Online Food Delivery
- Reputed & well-known Brand.
- Efficient & Large Delivery Network.
- ~1,30,000 Listed Restaurants & ~1,60,000 Delivery partners.
- Investment in Online Grocery based company Grofers
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Financials:
- Zomato's assets have grown from 3,400 cr to 8,700 cr from FY2019 - FY2021.
- It managed to increase revenue from nearly 1,300 to 2,100 cr in FY2019 - FY2021.
- Net Profit/Loss seems to be volatile as it was nearly 1,000 cr loss in FY 2019 which rises to nearly 2,300 cr loss in FY 2020 and again dropped to 800 Cr loss in FY 2021.
2019 2020 2021 Assets 3,413 Cr 2,900 Cr 8,703 Cr Revenue 1,397 Cr 2,742 Cr 2,118 Cr Profit/Loss -1,013 Cr -2,362 Cr -822 Cr EPS -2.57 -5.42 -1.51
| Date | GMP | % of Rs.76 (Approx.) |
|---|---|---|
| 10th July 2021 | Rs. 16 | 21% |
| 11th July 2021 | Rs. 12 | 16% |
| 12th July 2021 | Rs. 13 | 17% |
| 13th July 2021 | Rs. 16 | 21% |
| 14th July 2021 | Rs. 09 | 11% |
| 15th July 2021 | Rs. 10 | 13% |
| 16th July 2021 | Rs. 14 | 18% |
Zomato IPO Grey Market Premium (GMP) on 19th July 2021 is 15 rupees i.e. ~19% premium.
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Live Subscription Status: (Data Last Updated at 16th July, 05:00PM)
| Category | Subscription |
|---|---|
| Qualified Institutional Buyers (75% Quota) | 51.79X |
| Non-Institutional Investors (15% Quota) | 32.96X |
| Retail Individual Investors (10% Quota) | 7.45X |
| Employees (65L Shares) | 0.62X |
| Total (9375 Cr) | 38.25X |
Zomato IPO subscribed 4.80 times in total & 4.73 times in the Retail Category on the second day of the offer.
| Date | QIB | NII | Retailers | Employees | Total |
|---|---|---|---|---|---|
| 14th July 2021 | 0.98X | 0.13X | 2.7X | 0.18X | 1.05X |
| 15th July 2021 | 7.07X | 0.45X | 4.73X | 0.36X | 4.80X |
| 16th July 2021 | 51.79X | 32.96X | 7.45X | 0.62X | 38.25X |
How to Apply for Zomato IPO?
You need a Demat Account to apply for Zomato IPO. The minimum Investment needed for Zomato IPO is around 14,000 rupees.
Points to consider while applying for an IPO:
- IPO usually opens for 3 trading days from 10AM to 05PM
- IPO Investment amount varies roughly from 14,000 rupees to 2,00,000 (2 Lakh) rupees for Retail Investors
- Choose only good IPO's that are at fair valuation because all IPO's doesn't get Listing Gain, some may also open on Discount
- Apply for only 1 Lot/Demat account
- Choose Upper Price Band while placing Bid
- Invest in IPO's on 3rd Day after considering the subscription data
- Only 1 application is allowed per PAN Card
- Use only that UPI for IPO Payment which is registered with your name & has your PAN linked
- To increase the probability of getting an allotment, you can apply from multiple Demat Account of your family members
Red Herring Prospectus:
Here is the link of Zomato's RHP:
source: Zomato, BSE
Disclaimer: The article is for education purposes only. consult your financial advisor before making any investment. Data provided in this article are taken from various websites. We will not be responsible for any mismatch. GMP may vary due to high volatility.
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