Zomato IPO Review: Zomato IPO Launch Date & IPO Price

published on: July 10, 2021 last updated on: March 11, 2022
Zomato IPO

The Initial; Public Offering (IPO) of Zomato, the online food delivery company, will go available next week for the subscription. Since its launch, it was one of the most expected IPOs over the last year. Did you know that Zomato IPO is the 2nd largest IPO in India over the previous year?

The present study is a guide highlighting the Zomato IPO details, including its launch date, its price, and much other information. Read the below segment to get rich insights before proceeding with a subscription as the date has come closer.

What Is The Zomato IPO?

Zomato IPO Review

The Initial Public Offering of Zomato is going to hit the market very soon. It is worth Rs 9375 Crore. After SBI Cards and Payment Services’ IPO, which was worth Rs 10341, it ranks 2nd position in terms of vastness. 

Individual retail investors now can apply for the lowest amount of Rs 14,820 worth of shares at a higher price strip of Rs 76/equity share. On the contrary, the maximum amount of share that one can apply for is Rs 1,92,660 at the same price band.

In this IPO, Zomato is giving a sharp hike to its target by 14%, which is equal to $1.3 billion of raise. With the rise of demand in the home market, the need for this raise has become necessary. 

What Is The Zomato IPO Date Of Launching?

Zomato IPO Date Of Launching

If you are interested in subscribing, you must know the Zomato IPO Date of launch and the closure date. It is because they have given minimal time for completing the subscription procedure. 

To be very precise, Zomato’s IPO is by far the 27th public issue of 2021 in the country. Therefore, on 14th July Wednesday, 2021. The good delivery giant has decided to launch the IPO in the market. Furthermore, it would be available for subscription till 16th July, Friday, 2021

The company leaders expect this IPO to make the online Food delivery startup listed on national bourses.

Price Of The Zomato IPO

Price Of The Zomato IPO

Are you confused about the exact price of the Zomato IPO? Indeed you have; otherwise, you would not have been here. Well, we can say that you have come to the right place. We have accumulated the correct information about the process. Each share is at a price band of Rs 72 to Rs 76

Some of the leading business persons and experts have commented that it is slightly overvalued. In addition, the face value of the initial public offering will be Re 1 each. The lot size of the bid comprises 195 shares along with multiples, while the issuer size would be Rs 9375 crore.

Is The Entire Business Plan Behind This Feasible?

zomato business model

As you can understand, it is a part of the business expansion plan of Zomato. According to economists and entrepreneurs, this plan is feasible enough as they are intending to shift towards backward integration. 

The team believes that through this, they will boost the relationship with business partners even better. Nevertheless, several questions have been arising in terms of the efficiency and scalability of the IPO model. These queries mainly revolve around their current plans and how much benefit they can extract from them. 

Needless to say that now it is too early to comment on the business expansion plan. The concern of valuation is also justifiable since it is a food delivery business; therefore, it will receive immense value.  

The Chief Financial Officer of Zomato has opined that the entity will gather about $2 billion cash after this IPO. Thus, it is a significantly profitable prediction; however, concern still lies due to many risks and uncertainties. 

In spite of their series of denials, the COVID 19 pandemic has been rough on Zomato’s growth. Amidst a -25% slump, they are launching an IPO in the market. The factor alone is a matter of risk to many business professionals

Potential Risks Involved

Potential Risks Involved

Many of you would like to know how many risks link to this public offering. As a business development strategy, there must be plenty of dangers or demerits apart from the rosy pictures. 

Two core aspects that would keep the valuation of IPO in fog are as follows: 

  • The first risk relates to profitability. It is a matter of monitoring now that Zomato will be judged in terms of its profit-making ability. This surveillance would continue up to 3 to 5 years after this IPO. As per the opinion of various experts, if they want to augment the frequency, they have to give discounts. 

This approach will be viable in a country that is exceptionally value-oriented. Thus the entire scenario is relying on their future growth and competitive positioning in terms of the international rivals. In addition to these, the frequency of placing orders and revenue growth rate will fall under consideration.

  • The market structure poses another significant risk. It is because if a robust player penetrates the market, it has the potential to be highly competitive. In that case, rebating should increase in order to maintain the present user base. As a result, 

The Final Words

It is evident that Zomato is mainly seeking growth in valuation through the IPO. Although it is a new concept to the domestic market’s food delivery industry, there are hopes for its success. Furthermore, there have been instances that similar businesses beyond the national borders have shown positive results over the past few years. 

The Zomato IPO news is the crispy topic this week to the news agencies as well. We expect after reading this article you have got answers to many of your queries. If you want to put your valuable feedback, drop it in the comment box.

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