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.

Zomato Limited IPO 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%

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