|Zomato Limited IPO details|
|Issue Period||14-Jul-2021 to 16-Jul-2021|
|Price Range||Rs.72 to Rs.76|
|Bid Lot||195 Equity Shares and in multiples thereof|
|Minimum Order Quantity||195 Equity Shares|
|Maximum Subscription Amount for Retail Investor||Rs. 2,00,000|
|Maximum Subscription Amount for Eligible Employee||Rs. 5,00,000|
|IPO Market Timings||10.00 a.m. to 5.00 p.m.|
Zomato was established as DC FoodieBay Online Services Private Limited in the year 2010. The company was started to connect the customers, restaurant partners, and delivery partners, serving their multiple needs. As of December 31, 2020, Zomato Ltd is present in 526 cities in India with 350174 active restaurants listings. Not only this, Zomato has its presence in 23 countries across the world.
Zomato limited is now entering the world of the share market by issuing its first initial public offering (IPO). Before diving deep into the details of Zomato’s IPO, let us know what an IPO is.
Initial Public Offering (IPO)
An Initial Public Offering is also known as IPO, is the very first time a company issues its shares to the public. This is when a private company chooses to go ‘public.’ In other words, the process of presenting shares of a private corporation to the public in the form of new stock issuance. India perceived 36 Initial Public Offerings in the year 2017, through which companies raised INR 67,147 crore in the equity market.
A company has some private investors before launching the IPO. These private investors are founders, venture capitalists, and angel investors. With an IPO, a company offers its shares for sale to the public, and you can buy shares and become a shareholder.
About the company
Zomato Ltd is a multinational Indian restaurant assembler and food delivery company, founded by Mr. Pankaj Chadha and Deepinder Goyal in July 2008. Zomato Ltd provides information, menus, and user reviews of restaurants as well as food delivery options from partner restaurants in some of the selected cities. Up until 2019, Zomato’s services were limited to twenty-four countries and in more than ten thousand cities.
Today, Zomato Ltd is an unlisted public company, headquartered in Gurgaon, Haryana, India. The area served by Zomato Ltd is across the boundaries of our country that is worldwide. Some of the prominent people of the company are Mr. Gaurav Gupta, who is the Chief Operating Officer (COO), and Mr. Deepinder, who handles the company in the capacity of Chief Executing Officer (CEO). By the year 2020, the revenue generated by the company was Rs. 2,451 crores, equivalent to USD 340 million). The number of employees currently working in Zomato Ltd is more than fifty thousand.
Zomato got massive funding from some of its significant sources, like USD 16.7 million through Info Edge India in 2010-2013. Zomato provided a 57.9% share to Info Edge India in exchange. Then the company approached Sequoia Capital, and along with Info Edge India, they generated the auxiliary USD 37 million by November 2013.
Further, Zomato was able to arrange to fund USD 60 million and reached an estimated worth of USD 660 million by November 2014. This enclosing of funding was being guided corporately by Info Edge India and Vy Capital, with contribution from Sequoia Capital. Info Edge India, along with Sequoia Capital and Vy Capital, led additional funding for USD 50 million by April 2015. This was borne by another USD 60 million funding by a Singapore government-owned investment company Temasek, in September.
By October 2018, Alibaba’s payment partner Ant Financial came forward, and Zomato was able to generate USD 210 million. In exchange, Ant Financial got an ownership stake of over 10% of the company as part of the enclosing, which appraises Zomato on every side with USD 2 billion. Later on, during 2018, Zomato had received an additional USD 150 million from Ant Financial.
In September 2020, Zomato generated USD 62 million from Temasek, after formerly committed capital from Ant Financial not at all came between.
In October 2020, as the sequence of a Series J round of funding, Zomato generated USD 52 million from Kora, a US-based Investment organization.
In February 2021, Zomato generated USD 50 million from five investors, inclusive of Tiger Global Management, at an evaluation of USD 5.4 billion.
To date, Zomato is able to acquire around 12 startups worldwide.
|Time of Acquisitions||Businesses Acquired|
|September 2014||Poland-based restaurant search service Gastronauci|
|December 2014||Italian restaurant search service Cibando|
|2015||Seattle-based food gateway, Urban spoon, for approximately USD 60 million|
|2015||Mekanist in an all-cash deal|
|2015||Delhi-based embark on Maple Graph that boosts Maples (renamed Zomato Base)|
|2015||NexTable, a US-based table reservation and restaurant management manifesto|
|2016||Sparse Labs, a planning technology|
|2017||Food delivery startup, renamed from Roadrunner when it acquired Tiny Owl in 2016.|
|September 2018||Bengaluru-located food e-marketplace, Tongue Stun Food, for around USD 18 million in a cash and stock deal.|
|December 2018||Lucknow-based startup, Tech Eagle revolution that works completely on drones, for a confidential amount. Zomato declared that the acquisition would contribute with regards to drone-based food delivery in India, building technology points at a hub-to-hub delivery network.|
|January 2021||Uber Eats’ business in India in an all-stock deal, providing UberEats 10% of the collective business.|
Zomato IPO Price and Date
The Zomato IPO expected share price is approximately INR 8250 crores. It is the compound of fresh issues of INR 7500 crores and INR 750 crore value of share sale by Info Edge. The initial public offerings of Zomato limited are offered to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The face value of the Zomato IPO price is expected to be INR 1.
Zomato went on a fund-raising binge in FY21, with equity capital worth INR 4,800 crore, which was raised in the first nine months and INR 1800 crore worth from another funding in February, leaving analysts analysing what are the plans of this Indian multinational restaurant aggregator and food delivery company with the cash on the balance sheet after this IPO worth INR 8,250 crore.
The launching date for the initial public offering (IPO) is not confirmed yet, but it has been announced that the opening and closing date of the Zomato IPO will be in the mid of 2021.
Zomato declares to employ 75% of INR 7,500 crore proceeds for getting organic and inorganic growth opportunities and the rest for general corporate purposes in its Draft Red Herring Prospectus (RHP) IPO. Out of these 75% funds, Zomato proposes to utilise 40% funds for organic growth initiatives, consisting of ramping up of delivery infrastructure, customer acquisition, and building of tech capabilities. The rest of it would be used to fund inorganic acquisitions.
How To Apply for Zomato IPO with TradeSmart
If you are a first-time investor and have never before participated in primary markets and are wondering how to apply for the Zomato IPO, then head over to TradeSmart online for a simple and smooth IPO application experience. For existing stock-market investors, the simplest way to apply for a Zomato IPO is through their Demat accounts. TradeSmart will help you save up to 90% on brokerage, with low-cost brokerage plans to suit your trading needs. We open a paperless Demat and Trading account in less than 24 hours.
In a few simple steps, you can register to the TradeSmart platform and use their ‘Box‘ interface to apply for the Zomato IPO. Simply select the “IPO” option from the ‘Portfolio’ menu and search for the Zomato IPO from the list of current and upcoming IPOs. Every important IPO information such as the open and close date, minimum order quantity, price range, and issue size will be visible next to the IPO name.
Once you have located the Zomato IPO in the list, click on the ‘Bid’ button next to it to participate in the IPO offer. TradeSmart allows you to bid for an IPO and pay through your UPI ID. So, all you have to do to bid for the Zomato IPO successfully is enter your UPI ID that is registered to your personal bank account.
Then you can easily apply for the Zomato IPO by submitting your bid at the cut-off price or any other price that matches your investment budget. You can only place your bid for share quantity as per the permissible lot size, which is also indicated on the portal. After finalizing the quantity and price for one or multiple bids, you can confirm that you have read the RHP or IPO Draft Prospectus and accept the UPI mandate on your UPI app to block the IPO application amount.
With this, your application for the Zomato IPO will be confirmed, and you would have participated in the biggest mega-IPO of India.
Zomato Limited IPO Latest News & Subscription Status Today
|Category||Subscription Status (Day3) – July 16th,2021|
|Qualified Institutional Buyers (QIB)||51.79 Times|
|Non Institutional Investors||32.96 Times|
|Retail Investors||7.45 Times|
|Category||Subscription Status (Day2) – July 15th,2021|
|Qualified Institutional Buyers (QIB)||7.07 Times|
|Non Institutional Investors||0.45 Times|
|Retail Investors||4.73 Times|
|Category||Subscription Status (Day1) – July 14th, 2021|
|Qualified Institutional Buyers (QIB)||0.98 Times|
|Non Institutional Investors||0.13 Times|
|Retail Investors||2.69 Times|
What are the open and close dates of the Zomato IPO?
The Initial Public Offering of Zomato Limited will open for Subscription on July 14, 2021 (Wednesday) and will close on July 16, 2021 (Friday).
What is the price range for applying for the Zomato IPO?
The offer price for Zomato Limited IPO has been fixed at Rs 72 to Rs 76.
What is the lot size and minimum order quantity of the Zomato IPO?
Investors can subscribe to the IPO by applying for a lot of 195 shares or in multiples thereof.
For the Zomato IPO what is the Maximum Subscription Amount for Retail Investors?
The amount is Rs 2 lakhs.,i.e maximum of 13 lots at the upper end of the price band.
What is the allotment date for the Zomato IPO?
The shares will be alloted around July 22, 2021
Who is the registrar of Zomato IPO?
The registrar is Link Intime India Private Limited.
When will the shares of Zomato be listed on the exchanges?
The shares of the company will be listed by the end of July, most likely by July 27 on both NSE & BSE