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Zomato IPO Application Prerequisites & Updates

Zomato IPO Subscription Updates, and prerequisite for application
July 15, 2021 0 Comments

Zomato IPO subscription updates and other details: Indian multinational restaurant aggregator and food delivery company Zomato has come up with a public issue (IPO) for listing into the Indian share market, with a total issue size of Rs. 9,375 Cr.

The IPO opened for subscription on 14th July 2021 and will remain open till 16th July 2021. The offer price for the Zomato public issue is fixed at ₹72- ₹76 per share with a minimum quantity i.e. the lot size of 195.

Zomato IPO Twitter Buzz

Zomato’s competitors, as well as supporters and fans, tweeted on the occasion. Deepinder Goyal, founder of Zomato made a statement through a tweet, “Just ordered a triple breakfast @zomato. Stress eating.”

While, CEO Edelweiss Asset Management Limited, Radhika Gupta replied, “All the best Deep. And I order too much on Zomato… Way too much!”

Deep Goyal Zomato -Tweet

Soon, Zomato on its tweeter said: “received more love today than on our birthday 4 days ago. glad to see people care less about how far we’ve come and more about how far we can still go.”

Zomato tweet on IPO

A tweet trended that had a message from Swiggy (an Indian startup that is a competitor of Zomato)

Swiggy message on Zomato IPO

First Day Subscription Stats of Zomato IPO

Luckily, Zomato’s IPO got fully subscribed on its first day of bidding, thus had a good response from the retail investors. The issue got subscribed nearly 1.05 times according to statistical research.

The offer had received total bids for 75.60 crores against an IPO of 71.92 crore equity shares. The 10% retail quota was oversubscribed nearly 2.69 times and the Qualified Institutional Buyers (QIBs) share was subscribed 0.98 times (98%), while the portion reserved for non-institutional investors got 0.13 times (13%) subscriptions. The share which was set aside for employees was subscribed 0.8 times which is equivalent to 18%.

Second Day Subscription Stats – So Far

On the second day (15th July 2021), by now, the issue has subscribed 1.19 times so far. The offer has received bids for 85.42 crore equity shares against an IPO size of 71.92 crore equity shares.

The retail investors oversubscribed by 3.40 times, whereas non-institutional investors have put up bids for 16 percent against their reserved portion and that of qualified institutional buyers 98 percent. The share which was set aside for employees is subscribed by 21%.

How to Apply for an IPO?

IPO can be applied online as well as offline:

Online: The application can be made through Bank using the ASBA facility or through respective Demat accounts. Login to net-banking and check the investment section for investing in IPO online, follow the link for more details. In order to open a Demat account, and applying Zomato Zerodha,  Samco, etc brokerage firms can be contacted. 

Offline: For offline application, one has to visit the branch, fill the IPO application form, and submit it with the bank along with a cheque of the due amount. More details here.

Listing Information

Currently, the Zomato grey market price/premium (GMP) stands at Rs. 10. The allotment date is 22nd July 2021 and the Zomato IPO listing date (tentative) is 27th July 2021. The Zomato IPO expected price for listing should be above 10% to issue price.  

Zomato IPO Review

The IPO belongs to the foodservice industry that has a huge scope for growth. In India the company has two core businesses, Business to customer (B2C) – wherein they offer food delivery and dining out; under business-to-business (B2B), they offer Hyperpure (Zomato’s supplies platform to provide fresh, hygienic, high-quality ingredients and supplies to restaurants).

Though, Zomato has consistently posted losses (loss of Rs 2,363 crore in the financial year 2020, a loss of Rs 1,013 crore in FY2019 & Rs 104 crore in FY2018), yet, revenues have been growing every year and the company is continuously gaining market share year on year.

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