Zomato Ltd IPO

Closed

IPO Details

  • Open Date 14-Jul-21
  • Close Date 16-Jul-21
  • Lot Size 195 Equity Shares
  • IPO Size ₹ ₹ 9375.00 - 9895.83 Cr
  • IPO Price Range ₹ 72 - 76
  • Min Investment ₹ 14040
  • Listing Exchange NSE, BSE
  • Basis of Allotment 22-Jul-21
  • Refunds 23-Jul-21
  • Credit to Demat Account 26-Jul-21
  • Listing Date 27-Jul-21

Zomato Ltd IPO Subscription Status

Zomato Ltd IPO Subscription Status

Category

Subscription Status
Qualified Institutional (QIB) 51.79 Times
Non-Institutional (NII) 32.96 Times
Retail Individual 7.45 Times
Employee 0.62 Times
Total 38.25  Times

 

Zomato Ltd IPO Subscription Details (Day by Day)

Date QIB NII Retail Employee Total
July 14, 2021 17:00 0.98x 0.13x 2.70x 0.18x 1.05x
July 15, 2021 17:00 7.07x 0.45x 4.73x 0.36x 4.80x
July 16, 2021 17:00 51.79x 32.96x 7.45x 0.62x 38.25x

IPO Synopsis

The issue an offer for sale of ₹375 crores by the company’s early investor—Info Edge—and a fresh issue worth ₹9,000 crores.

The Company proposes to utilise the Net Proceeds towards the following objects:
1.  Funding organic and inorganic growth initiatives; and
2.  General corporate purposes
 

Zomato Shareholding

% Shareholding

Pre-IPO

Post-IPO

Promoter & Promoter  Group

-

-

Public

95.80

96.43

Non Promoter Non Public (Employee Trust)

4.20

3.57

Source: RHP

About Zomato Ltd

According to RedSeer, Zomato is one of the leading Food Services platforms in India in terms of the value of food sold, as of March 31, 2021. During Fiscal 2021, 32.1 million average MAU visited zomato platform in India. As of March 31, 2021, the company is present in 525 cities in India, with 389,932 Active Restaurant Listings. Zomato’s mobile application is the most downloaded food and drinks application in India in each of the last three fiscal years since Fiscal 2019 to Fiscal 2021 on iOS App Store and Google Play combined, as per App Annie’s estimates. While the company had a footprint across 23 countries outside India as of March 31, 2021, Zomato  have taken a conscious strategic call to focus only on the Indian market going forward. Given the large market opportunity in India, the company believes a focused Zomato will enhance the value for all the stakeholders.

Financial of Zomato Limited

Particulars (Rs crore)

FY19

FY20

FY21

Revenue from Operations

1,313

2,605

1,994

EBITDA

-2,243

-2,305

-467

PAT

-1,010

-2,385

-816


Key Points of Zomato:

Choice between sensible growth vs. profitable growth: 
While food delivery companies have historically focused on hyper growth with little focus on profitability, pandemic has shown that such business models can generate profitability on unit economics basis. We expect Zomato to sustain focus on growth, albeit also be prudent about margins. We believe the food delivery market has not yet reached the stage when companies can start thinking about profitability at the expense of growth. 

Creating a food super app or the Indian Meituan? 
With its delivery and dine-out businesses, Zomato is probably the only scaled up app that has offerings that match those of Yelp, DoorDash and OpenTable in a single app. Further, through its B2B supply business, Hyperpure, and potential foray into B2C grocery through Grofers, it is metamorphosing into a food-tech super app catering to a large part of the consumer food chain. With US$2bn in cash post its IPO, Zomato may focus on international expansion in the long term, while venturing into Meituan’s model of offering travel & other services may be tried too.

No room for a third player, strong enough entry barriers: 
Zomato and Swiggy have both raised more than US$4.5bn till date, to reach their current scale. Some players such as Food Panda and Uber Eats, with expertise in food delivery, have already exited the Indian market. We believe the food delivery business cannot be built as an adjacency to another horizontal play and requires razor-sharp focus to drive returns. Hence, any threat from a third, well-funded player is low. Also, a new player would have to compete with existing offerings and differentiate on factors other than pricing, for building a sustainable base.  

Risks:

  • The company has a history of net losses and expects bigger expenses in the future.
  • The COVID-19 pandemic, or a similar public health threat, has had an impact and could further impact the business and financial performance of the company.
  • Failing to retain existing restaurant partners, customers or delivery partners or failing to add new restaurant partners, delivery partners or customers, may have an adverse impact on the business.

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

IPO NewsIPO News

Top Stories for you
Story Blog
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024. Allotment is scheduled for Tuesday, April 2, 2024, with listing on NSE SME tentatively set for Thursday, April 4, 2024.

Most Popular
Story Blog
Aspire & Innovative IPO Subscribed 15.17 times
Blue Pebble IPO Subscribed 56.32 times
SRM Contractors IPO Subscribed 86.56 times

IPO BlogIPO Blog

Top Stories for you
Naman In-Store (India) IPO Allotment Status

Building blocks of the Naman In-Store (India) Ltd IPO Naman In-Store (India) IPO is book built issue of Rs 25.35 crores. It consists entirely of fresh issue of 28.48 lakh shares. Naman In-Store (India) IPO opens for subscription on March 22, 2024, & closes on March 27, 2024. allotment is expected to be finalized on March 28, 2024. Naman In-Store (India) IPO will list on NSE SME with tentative listing date set ...

IPO GuideIPO Guide

Top Stories for you
IPO Cycle

The IPO cycle, also referred to as Initial Public Offering Cycle, allows private companies to go public and offer the company's shares to the general public for the first time. It ...

 
Greenshoe Option
How To Cancel An IPO Application
NFO vs IPO
What Is FPO In Share Market?
What is an Abridged Prospectus?
How to Buy IPO Online in India