Zomato is an online delivery platform that initiated its operations in 2010. It runs on a B2C model. The customers get direct inquiries of restaurants accomplished, along with booking dining reservations, food delivery or take away facilities, reviews and ratings, etc. Hence it is in short an amazon of the food world. It also has a premium membership feature included in it.
Currently the company runs its operations in about 23 countries through a partnership with 131000+ restaurants. It also has more than 1.6 lakh delivery partners.
IPO DETAILS
The Zomato IPO is set to launch on 14th July, 2021. The subscription timeline extends till 16th July, 2021. The size for the IPO is 9375 Crore Rs. Shares issued through Offer for sale are 375 Crore Rs. Shares worth Rs. 9000 Crore are issued through Fresh issue. The minimum lot size is 195 shares and the price is set at 72 Rs. – 76 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 14th July, 2021 |
| IPO CLOSING DATE | 16th July, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 1 Re. per share |
| IPO price band | 72 Rs. – 76 Rs. |
| LOT SIZE | 195 shares |
| MINIMUM ORDER QUANTITY | 195 shares |
| ISSUE SIZE | 9375 Crore Rs. |
| OFFER FOR SALE | 375 Crore Rs. |
| FRESH ISSUE | 9000 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 27th July, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 14th July, 2021 |
| IPO CLOSING DATE | 16th July, 2021 |
| IPO ALLOTMENT DATE | 22nd July, 2021 |
| REFUNDS | 23rd July, 2021 |
| DEMAT A/C CREDITED ON | 26th July, 2021 |
| IPO LISTING DATE | 27th July, 2021 |
The Zomato IPO begins for subscription from 14th July, 2021. The IPO subscription would continue till 16th July, 2021. The allotment status for the shareholders who applied would come on 22nd July, 2021. The refunds for the ones who did not get allotment would be initiated on 23rd July, 2021. The DEMAT accounts of shareholders would be credited on 26th July, 2021. The listing of the company would be accompanied on 27th July, 2021.
PROMOTER AND LEAD MANAGERS
There are no promoters for the Zomato Firm. However there have been multiple companies who have invested in it.
The lead managers for the company are :
- Morgan Stanley India Company Private Limited
- BoA Merrill Lynch
- Credit Suisse Securities India Private Limited
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
The minimum lot size for the company is decided at 195 shares. This holding accounts to Rs. 14820. The maximum lot size is decided at 2535 shares. This amounts to Rs. 192660. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 195 shares | 14820 Rs |
| Maximum | 2535 shares | 192660 Rs |
OBJECTIVES FOR THE IPO
- The money from the IPO can also be utilized to meet general corporate purposes.
- The company is planning to fund its both organic and inorganic initiatives for growth through the IPO money.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 87035 | 29003 | 34134 |
| REVENUE | 21184 | 27427 | 13977 |
| NET PROFIT | (8164) | (23856) | (10105) |
The company has been suffering from constant fluctuations in the balance sheet. The asset base has been close to 34000 Crore Rs in 2019 and it decreased to 29000 Crore Rs in 2020. However the assets rose upto the level of 87000 Crore Rs in 2021. The revenues have also been a lot unsteady due to the COVID crisis. With a constant increase in asset base, the company expected more revenue outflow. But the COVID situation bruised the company’s expectations.
Talking about the profits and losses, the company has constantly incurred losses and there hasn’t been any profitable quarter or year since inception. One should be careful about investing in the company. However one positive thing is that the investors are staying afloat and there is fresh equity introduced of 9000 Crore Rs. This means only 375 Crore Rs. of OFS is there which is a positive sign for the investors to look into the IPO.
PROS
- It has a strong brand reputation in India.
- Zomato is a leader in the food delivery segment.
- Website is customer friendly and has great AI facilities.
- Spread in more than 23 countries and has a tie up with more than 1.3 Lakh restaurants.
CONS
- Constant loss incurred during the past 3 years of operations.
- The revenues of the past year got a lot hit due to the COVID impact.
- Company has been suffering ever since the COVID situation has kicked in.
ZOMATO IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Zomato IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
