The most-awaited listing by food delivery unicorn Zomato has been advanced from July 27 to July 23, Friday. ‘s issue price has been fixed at Rs 76 per share.
Unlike a typical listing ceremony, Zomato is going to keep it a ‘five-minute low-key’ event’, and the bell is to be opened or ringed by ‘riders’ digitally, a Zomato spokesperson told YourStory. The company has a total of 169,802 active delivery partners, according to its prospectus.
The stock-listing ceremony is one of the most notable events for any company. Usually, the listing witnesses keynotes from the management, and bell-ringing by the founder or CXO of the company. The ceremony happens at the stock exchanges’ convention centres, but this time it is going to be a digital event.
According to a Zomato spokesperson, riders or Zomato delivery partners will ring the listing bell, and everyone will be back to work. “There will be no speeches as well,” said the spokesperson.
Interestingly, Zomato will be India’s first unicorn to launch an initial public offering (IPO).
The Zomato IPO was opened for subscription from July 14-16, and was subscribed 44 times across all categories. After getting a strong response to its initial public offering (IPO) from investors last week, the food delivery company has started allotting the IPO on Thursday.
Here are all the things you need to know:
The financials
For the year ending March 31, 2021, Zomato’s total orders stood at 239 million with total gross order value of Rs 9,500 crore.
In FY21, the startup’s revenue slipped over 20 percent to Rs 2,118.4 crore. But it managed to cut losses, recording Rs 816.4 crore, compared to Rs 2,385.6 crore last year.
As of March 31, 2021, Zomato had 389,932 active restaurant listings and a presence in 525 cities in India and 23 other countries.
The company reported net cash flow of Rs 78.55 crore. In its media briefing, Zomato executives said that after the successful IPO, Zomato will have $2 billion, or around Rs 15,000 crore, in the bank.
Deepinder Goyal, Founder & CEO, Zomato
Application status
Investors can check their application status through the Bombay Stock Exchange (BSE) website as well as the Link Intime India Private Limited portal, the registrar for the issue. The registrar, a SEBI-registered entity, is qualified to act as such and carry out the allotment process as per the prospectus.
On the official website of the BSE, bidders need to go to the ‘status of issue application’ page and select the equity option. Select Zomato Limited on the page and put in the application, PAN number, DP Client ID or Account number/IFSC option to know about the share allotment.
Those who have not been allotted shares will get a refund and those who have been allotted will get the shares by Friday in their Demat account.
IPO response
Almost 20 percent of all applications for Zomato IPO, which closed for subscription on Friday with a strong investor interest across categories, went through stockbroking firm Zerodha.
Zomato’s IPO was priced in the range of Rs 72 to Rs 76 to raise Rs 9,375 crore – Rs 9,000 crore worth of fresh issue of equity shares and Rs 375 crore of a secondary share sale by InfoEdge. The company is eyeing a post-issue valuation of Rs 64,365 crore.
The IPO received very strong subscription from qualified institutional investors, non-institutional investors, and retail investors, with each category being subscribed multiple times.
The company has already raised Rs 4,197 crore from anchor investors, which include marquee names such as Tiger Global, New World Fund, Fidelity, and domestic mutual funds such as HDFC, SBI, and Axis.
Other IPOs
Zomato will be followed by many other leading Indian startups that are gearing up to go public. Fintech unicorn Paytm unveiled its Draft Red Herring Prospectus (DRHP) where it announced plans to raise Rs 16,600 crore. Another Gurugram-based startup, Mobikwik, also filed for a Rs 1,900 crore IPO earlier this month while auto classifieds player CarTrade had filed for an IPO in May.
