Zomato IPO Closed

India's biggest food delivery company is going public.

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Date 14 Jul 2021 – 16 Jul 2021
Price range 72 – 76
Minimum order quantity 195
(D)RHP View

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The much-awaited IPO of Zomato is finally here. The Rs. 9,375 crore public offering of Zomato comprises fresh issuance of equity shares worth Rs. 9,000 cores and an offer for sale of Rs. 375 crores from shareholders Info Edge, which is listed on exchanges as Naukri. In terms of the issue size, Zomato will be the largest IPO in India since the beginning of 2021.

Financial Snapshot

As Zomato heads toward launching its IPO, you may want to check some of its financials. Here is a summary of its recent financials picked from the DRHP:
Particulars Nine-month period ended Dec 2020 Fiscal 2020 Fiscal 2019 Fiscal 2018
Equity Share capital (in Rs. crores) 0.031 0.03 0.03 0.03
Net worth (Rs. crores) 6,330.07 2,083.10 2,596.75 1,207.85
Revenue from operations (Rs. crores) 1,301.34 2,604.73 1,312.58 466.02
Loss for the period/year (Rs. crores) (682.19) (2,385.60) (1,010.23) (106.91)
Basic earnings per share (8,496.65) (34,121.10) (16,027.31) (2,243.76)
Diluted earnings per share (8,496.65) (34,121.10) (16,027.31) (2,243.76)
Net asset value per equity share 78,863.30 30,026.70 43,130.82 26,140.47
 

Can a loss-making firm launch an IPO?

Yes, a loss-making company can launch an IPO. However, the portion of the IPO reserved for the retail category changes from the usual 35% to 10% of the overall issue size. We’ve covered the details on this here.

Zomato vs Food Delivery Industry

Zomato seems to have grown 7x since 2018 compared to the 3.6x growth of the overall food delivery industry:    

Growth Potential

Zomato has been growing at a very fast pace but how much headroom does the company have? This table comparing the total addressable markets in India, US & China may give us some indication:  

How do I apply for the Zomato IPO?

You can apply for the Zomato IPO using any supported UPI app by following two steps:
  • Enter your bid on Console
  • Accept UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

Further Reading:

  1. The Zomato IPO - Finshots
  2. Zomato to open IPO on July 14, plans to raise Rs 9,375 crore - Moneycontrol
  3. Exclusive Zomato IPO details - Economic Times