IPO Alert: Zomato opens on 14 July 2021

Are you ready for the hottest IPO of 2021? The much-awaited IPO of the online food delivery platform Zomato will be open for subscription between 14 and 16 July. So before you go on to Zomato to buy your next meal, you can also try to order a slice of the company. We bring you all the details about the biggest IPO of 2021 so far.    

Key details

• IPO size: ₹9,375 crore
• Fresh issue: ₹9,000 crore
• Price band: ₹72–₹76 per share
• Lot size: 195 shares
• Cost per lot: ₹14,820
• Issue opens: 14 July 2021
• Issue closes: 16 July 2021
• Basis of allotment date: 22 July 2021 
• Initiation of refunds: 23 July 2021
• Credit of shares to demat account: 26 July 2021
• Expected listing date: 27 July 2021

About Zomato

Back in 2010, Zomato was established as just a restaurant discovery platform. Over the years, the young internet startup expanded its offerings and is today one of the leading online food delivery platforms in India. It currently has a presence in 24 countries including India. Its active restaurant partners have grown to 1.5 lakh in FY21, up from 94,286 in FY19. The average order value on its platform has also risen from ₹264 in Q1FY20 to ₹395 in Q4FY21. 

Zomato boasts of having one of the largest hyperlocal delivery networks in India with around 1.7 lakh delivery partners. Also, at the operating level, its unit economics are improving with the company making ₹20.5 per order in the previous fiscal year. In comparison, it suffered a loss of ₹30.5 per order in FY20. 

However, the company has been incurring losses over the last three years. In the same period, its revenue has grown at a CAGR of 23%.           

About the issue

The IPO issue size is ₹9,375 crore. Of this, ₹9,000 crore is fresh issue, which will be used for the company’s organic and inorganic growth initiatives. The remaining ₹375 crore is an offer for sale.  

IPO allocation quota

To know more about the IPO, read its red herring prospectus here. The issue opens on 14 July 2021 and you can subscribe to Zomato with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!