Zomato’s mega IPO to launch on 14 July: 10 points to know

The much-awaited IPO of Zomato opens for subscription on 14 July 2021 and will close on 16 July 2021. The company aims to raise Rs. 9375 crores through its initial public offering.

The Zomato IPO price band will be Rs. 72 – Rs. 76/share. The offer worth Rs. 9375 crores, comprises new issues and OFS by existing stakeholders. In such a case, this initial public offering will turn out to be the second-biggest IPO in the past 4 years.

Take a look at these pointers below to get all burning questions about Zomato IPO price and more answered.

1. Objectives of IPO

Zomato intends to use the net proceeds from its upcoming IPO to achieve these objectives –

• Fund organic and inorganic growth tactics
• Account for general corporate purposes

2. Zomato IPO details

The Zomato IPO launch date is finalised on 14 July, and it’ll close on 16 July. Take a quick look at this table below for Zomato IPO details so far –

3. Zomato IPO dilution

This Initial Public Offering will witness a dilution of around 10% to 15%. It will be mostly through the fresh issuance of shares and an offer for sale (OFS) by Info Edge India Ltd., an early investor.

4. Anchor investors and promoters

Many reputed asset management firms and some noteworthy existing investors such as Temasek are likely to be anchor investors in this upcoming IPO.

You should note that unidentifiable promoters manage this company. However, it is professionally managed per the Companies Act and under ICDR Regulations.

5. Changes in OFS

Recently, Info Edge reduced its offer for sale in size in this upcoming IPO by half. Previously, it had planned to offer shares worth Rs. 750 crores for sale in Zomato IPO.

6. Company financials at a glance

Here’s a quick summary of Zomato’s financials from 2018 to 2020.

As of 31 December 2020, the total assets stood at Rs. 69,883.21 million, and its total revenue was recorded as Rs. 13,676.55 million. Accordingly, Zomato registered a profit after tax of Rs. 6,821.99 million.

7. Existing investors

Co-founder Deepinder Goyal holds 5.51% shares in the company. Take a look at this table below to find out who are some of the other existing and noteworthy investors of Zomato –

8. Company’s merchant bankers

Citigroup Global Markets India Pvt Ltd and BofA Securities India Ltd will act as the merchant bankers for this upcoming Zomato IPO.

9. Global coordinators

These following entities will act as the book-running lead managers and global coordinators of the IPO issue –

• Bank of America Merrill Lynch
• Credit Suisse Securities Pvt Ltd. (India)
• Citigroup Global Markets India
• Kotak Mahindra Capital Company
• Morgan Stanley India Company Pvt Ltd

10. Company strength

Are you wondering what makes Zomato a robust play in the market today?

Check out its most prominent competitive strengths to determine whether to consider this play or not –

• One of the leading and most popular food services delivery platforms.
• Operates through a strong network of 131,233 restaurants. In addition, it has a large team of 161,637 delivery partners.
• A well-connected and widespread on-demand hyperlocal network.
• Recognised brand equity across the country.

Key takeaway

The pandemic-induced restrictions have been a boon like none else for the food delivery sector. On top of that, the Zomato IPO could be a game-changer for the industry behemoth, providing added fuel to its already dynamic team and extensive national and global network.

Frequently Asked Questions

Who is the registrar for the upcoming Zomato IPO launch?

Link Intime India Private Ltd. is slated to be the registrar for this upcoming IPO.

How many countries is Zomato present in?

Zomato is present in 24 countries such as Sri Lanka, Philippines, the United Kingdom, United Arab Emirates, and Qatar.

What is the maximum number of lots for a retail investor?

A retail investor can place bids for 13 lots at the most, amounting to Rs.192660.