Food technology platform Zomato is preparing to go public (IPO) on July 14-16, hoping to raise 93.75 billion rupees. This will be the first Internet company and start-up company to raise government funds in India since the epidemic. The price of Zomato was 9,375 crore rupees, higher than the 8,250 rupees the company announced when it submitted preliminary documents to SEBI in April.
They set a price range of 72-76 rupees per share. At least 195 shares is a must in equity, then a multiple of 195. In the general offer, shares worth 9,000 crores represent the new issuance, while the rest is the sale offer of Info Edge (India) Ltd. Business for Zomato improved last year, benefiting from allowing takeaways and prohibiting restaurants.
Given that the company has shown strong business growth during the epidemic, how will it continue to grow once the environment returns to normal, but Zomato is in an industry with high barriers to entry and can help you achieve growth, when the market scale expands. The pure-play takeaway part is a virtual duopoly between Zomato and Swiggy.
Last year, the US transportation giant Uber left India’s grocery delivery business and sold Uber Eats India to Zomato. Recently, there are signs that this market segment is growing with the emergence of Amazon’s “direct ordering” in grocery delivery operations and restaurants. There is no program for aggregators like Zomato.
Analysts said that every start-up company should be seen as an independent company, not part of a basket. Some people believe that companies like Zomato provide huge business and growth opportunities and maybe a good investment in the long run.
“Ordering food has become a social need. In addition to valuation, I also see the potential of this type of company. Investors can enter them for long-term income, not just to profit from trading. Even if you don’t get a decent initial public offering (because it depends on the subscription limit being exceeded), people can buy after the stock is listed on the secondary market,” said the head of research at a leading brokerage firm. In business model and expansion and in terms of scope, it is important to pay close attention to the issue price: if the company that initiated the IPO requires a higher valuation, investors can wait to apply.