Zomato Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Zomato IPO

Zomato IPO: Key Details

  • Grey Market Premium (GMP) today: 10%

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Zomato Limited, incorporated in 2020, is a leading technology platform that connects customers, restaurant partners, and delivery partners, serving their multiple needs. It is one of the leading Food Services platforms in India in terms of value of food sold, as of March 31, 2021. During Fiscal 2021, 32.1 million average MAU visited their platform in India.

Zomato’s platform Offerings:

  • Food Delivery: Direct and Last mile food delviery Service
  • Dining-Out: Customer reviews, table booking, payments
  • B2B Supplies (Hyperpure): One-stop procurement solution
  • Zomato Pro: Eexclusive paid-membership program for discounts

As of March 31, 2021, they were present in 525 cities in India, with 389,932 Active Restaurant Listings. Their 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 they have a footprint across 23 countries outside India, they have taken a strategic call to focus only on the Indian market going forward.

Competitive Strengths

  • Strong network effects driven by unique content and transaction flywheels
  • Widespread and efficient on-demand hyperlocal delivery network
  • Technology and product-first approach to business
  • Strong consumer brand prescence across the length and breadth of India

Company Strategy

  • Continuous focus on unit economics and growth, at the same time
  • Expand and strengthen the community across three businesses – food delivery, dining-out and Hyperpure
  • Invest in new products and technologies
  • Continue to build a strong consumer brand recognized across India

Proceeds from Zomato IPO will be used to:

  • Funding organic and inorganic growth initiatives; and
  • General corporate purposes

Zomato IPO: Financials

201920202021
Revenue from Ops₹1,312.59 Cr₹2,604.74 Cr₹1,993.79 Cr
Profit before Excep*₹(2,210.43) Cr₹(2,263.57) Cr₹(490.36) Cr
Profit after Tax(1,010.51) Cr₹(2,385.60) Cr₹(816.43) Cr
EPS (Basic)(2.57)(5.42)(1.51)
*Tax and Exceptional Items
As of March 2020EPS (Avg)P/E (Floor)P/E (Cap)
Based on basic EPS(2.99)

Comparison with listed industry peers

There are no listed companies in India whose business portfolio is comparable with that of Zomato’s business and scale of operations.

Zomato IPO Dashboard

Issue Details

TypeValue
Issue Size₹9,375 Cr
Fresh Issue9000 Cr
Offer for Sale375 Cr
Face Value₹1/- per Equity Share
IPO Price₹72 – ₹76
Lot Size195 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open14/07/2021
Bid Close16/07/2021
Allotment Finalization22/07/2021
Initiation of Refunds22/07/2021
Credit of Shares22/07/2021
Listing Date23/07/2021

Lot Size and Price

LotsSharesAmount
1195₹14,820
132535₹1,92,660

Promoter Holding

HoldingPercentage
Pre-Issue[●] %
Post-Issue[●] %

Zomato IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%38,88,37,690 shares
NII15%19,43,37,499 shares
RII (Retail)10%12,95,58,333 shares
Employees65,00,000 shares
Total100%71,92,33,522 shares

Zomato IPO: Risks

  • Company has a history of net losses and they anticipate increased expenses in the future
  • They may not be able to sustain the historical growth rates, and historical performance may not be indicative of future growth or financial results.
  • Funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency
  • Growth of business will depend upon the strength of brand, and any failure to maintain, protect and enhance the brand could limit their ability to retain or expand the customer base
  • There is intense competition in food delivery and other businesses of the company and if they are unable to compete effectively, the business, financial condition, cash flows and results of operations could be adversely affected

For complete internal and external risk factors, you can refer the RHP of the company.

Zomato IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

Kotak Mahindra Capital Company Ltd
Morgan Stanley India Company Private Ltd
BofA Securities India Limited
Credit Suisse Securities (India) Private Ltd
Citigroup Global Markets India Private Ltd

Phone: +91-22-4366 0000 / +91 22 6118 1000
Email: [email protected]

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