- Zomato’s IPO will open on July 14 and close on July 16
- It may be listed on BSE and NSE on July 27
- The price band for this has been kept from Rs 72 to Rs 76.
The much-awaited IPO of food delivery company Zomato will open on July 14 and close on July 16. According to SEBI rules, it will be listed by the end of this month. According to market sources, it can be listed on July 27. According to the information given to BSE, the price band for this has been kept at Rs 72 to 76. The company has increased the size of its IPO in view of the huge demand among institutional investors.
Zomato recently got permission from market regulator SEBI to launch an IPO. The company can raise around Rs 9,375 crore from the IPO. In the recent past, the company has increased the size of the IPO keeping in view the demand. Also, Info Edge (India) Limited has halved the size of its OFS to Rs 375 crore. As per the draft red herring prospectus, fresh shares worth Rs 7,500 crore were to be issued under the IPO, while Info Edge (India) Ltd was to offer shares worth Rs 750 crore.
How much can the valuation reach?
The shares of the company will be listed on both NSE and BSE. According to sources, the company expects that after listing its valuation can reach $ 8 to 10 billion i.e. 60 thousand to 75 thousand crores. Zomato’s revenue doubled to Rs 2960 crore in FY20. In February, the company had raised Rs 1,800 crore from Tiger Global, Quora and others. For this the valuation of the company was set at $5.4 billion.
Zomato had filed an application for IPO with SEBI in April. According to the draft letter, the proceeds from the issue will be used for acquisition and expansion of business. Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the book running lead managers of this IPO.
Litmus test for second startup
Meanwhile, curiosity among investors has increased regarding Zomato’s IPO. In the gray market, the premium of this stock has increased by 20 per cent. According to analysts, Zomato has benefited a lot from the restrictions related to Kovid-19. The company’s revenue is expected to increase in the coming quarters. Zomato is one of those IPOs that investors are eagerly waiting for. This IPO will be a litmus test for domestic startups that are looking to launch an IPO. It is one of the largest startup companies in the country with investments from well-known private equity firms like Tiger Global Management and Fidelity.