ZOMATO LIMITED IPO
Incorporated in 2010, Zomato limited is a technology platform that connects restaurant partners, customers, and delivery partners for serving their multiple needs. Customers use zomato’s platform to discover restaurants, write & read customer reviews and upload photos, book a table, order food delivery and make payments while dining out. Along with customer services, it also provides restaurant partners with industry-specific marketing tools to grow their business while providing an efficient & reliable delivery service. It provides its delivery partners with flexible and transparent earning opportunities. Zomato also operates a one-stop procurement solution, hyperpure, that supplies kitchen products and high-quality ingredients to restaurant partners.
According to RedSeer, as of 31st December 2020, Zomato is one of the leading food services platforms in India in terms of food sold. In FY 2020, 4.15 crores average MAU visited the zomato platform in India.
As of 31st December 2020, Zomato was present in 526 cities in India along with 3,50,174 active restaurants listed. It also had a footprint in 23 countries outside India. It has taken a conscious strategic call that will only focus on the Indian market going forward. India has a large market opportunity that will enhance the value for all zomato stakeholders.
Zomato has different offerings to its customers under its B2C business:
- Food Delivery
- Dining out
- Hyperpure
- Zomato pro
Strengths of the company:
- Strong network effects that are driven by transaction flywheels and unique content.
- Efficient on-demand and widespread hyperlocal delivery network.
- Product-first approach and technology.
- Strong consumer brand that is recognized in length and breadth of India.
Purpose of the IPO:
- To fund the organic and inorganic growth initiatives of the company.
- For general corporate purposes.
Financial Performance of the company:
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 1,367.65 | 2,742.73 | 1,397.72 | 487.04 |
| Total Expenses | 1,723.78 | 5,006.31 | 3,607.87 | 593.96 |
| Profit After Tax | -682.19 | -2,385.60 | -1,010.23 | -106.91 |
| Total Assets | 6,988.32 | 2,900.38 | 3,412.88 | 1,374.49 |
*All the values are in crores and as per DRHP.
Valuation of the Company:
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | -1.27 | -5.09 | -2.39 | -0.33 |
| Diluted Earnings per Share (EPS) | -1.27 | -5.09 | -2.39 | -0.33 |
| Return on Net Worth (%) | -10.77% | -113.64% | -37.16% | -8.58% |
| Net Assets Value per Equity share | 11.77 | 4.48 | 6.44 | 3.90 |
*As per DRHP.
IPO details:
| Face Value | ₹1 per equity share |
| Market Lot | 195 Shares |
| Minimum Order Quantity | 195 Shares |
| Price Band | ₹72- ₹76 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹9,375 Crores |
| Fresh Issue | ₹9,000 Crores |
| Offer for Sale | ₹375 Crores |
| Listing | BSE |
Important IPO dates:
| Open Date | 14th July 2021 |
| Close Date | 16th July 2021 |
| Basis of Allotment Date | 22nd July 2021 |
| Initiation of Refunds | 23rd July 2021 |
| The credit of shares to Demat Account | 26th July 2021 |
| Listing Date | 27th July 2021 |
Allocation Quota:
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not less than 75% |
| Non- Institutional Buyers (NIIs) | Not less than 15% |
| Retail Investors | Not more than 10% |
Check your Zomato Limited IPO allotment status here:
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