Zomato IPO to open on July 14: Price, lot size and everything else you need to know

After seeing a marginal increase in its value following the success of online delivery companies during the COVID-19 pandemic, Zomato is all set to open its initial public offering (IPO). One of India's most successful food delivery companies, Zomato will open its IPO next week. The company had filed preliminary papers with SEBI in April this year. Here’s what you need to know about Zomato IPO:

Zomato IPO Date

Zomato, whose listing has been in the air for some time, will open its IPO on Wednesday, July 14, 2021, and will be available for subscription till Friday, July 16, 2021. The company had received a green signal from market regulator SEBI last week. The IPO will be listed on both NSE and BSE. The share allotment is rumoured to take place by July 22, while the share listings would happen on July 27.

Zomato Price Band

The online food delivery giant aims to raise Rs 9,375 crore through the offer, with a price band fixed for Rs 72-76 per share of the face value of Rs 1 each. Investors who wish to subscribe to the IPO can bid in the lot of 195 equity shares and multiples thereafter. According to the red herring prospectus, the proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives and for general corporate purposes of the food delivery company.

Zomato Market Cap

Zomato will have a post-money valuation of ₹59,623 crore, making it eligible for the 78th position among the top 100 Indian listed companies by market cap. The IPO will have a reservation of 75 per cent for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). Retail investors will be eligible to subscribe to the remaining 10 per cent of the issue.

About Zomato 

Zomato is an online restaurant aggregator and food delivery service application. The company which started off with a restaurant search and discovery with customer reviews and menus is currently one of the biggest food delivery services in the country. Zomato’s valuation saw a major fluctuation during the pandemic as the gross order value fell to Rs 1,093 crore in April - June quarter, only to rise significantly to Rs 2981 crore during October - December 2020 quarter, according to the company’s annual filings. Zomato IPO will be an industry-first as well as from the list of unicorn startups in India. Zomato founder Deepinder Goyal is considered one of the biggest names among the startup community in the country. 

IMAGE: PTI