Breaking Down the Zomato IPO

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Breaking Down the Zomato IPO

By Aditya Raghunath

Investing.com -- One of India’s first food delivery companies Zomato is set to launch its IPO shortly. Here are a few things you should know about the IPO:

  1. Zomato plans to raise Rs 8,250 crore through this IPO. It could be the largest IPO to hit Indian markets since SBI (NS: SBI ) Cards and Payment Services Ltd (NS: SBIC ) in March 2020.
  2. Out of Rs 8,250 crore, Rs 7,500 will be a fresh issue, while Rs 750 crore will be an OFS (offer for sale) by Info Edge India Ltd (NS: INED ). Info Edge, the owner of Naukri.com, is the parent company of Zomato.
  3. Zomato has said that it might consider a private placement of Rs 1,500 crore before the IPO. If it does so, its fresh issue size might reduce.
  4. For the financial year ending March 2020, Zomato’s total income stood at Rs 2,742 crore. Zomato is a loss-making entity as of now.
  5. Zomato raised $250 million in its latest round of funding, valuing it at $5.4 billion.
  6. Zomato and its rival Swiggy are the only two major players in India $11 billion food delivery market according to CLSA.
  7. “Food services is a large market in India with ~$80 Bn (~50% organized). Online food delivery is expected to grow strongly to reach $22 billion by 2025 growing at 40% CAGR. Online penetration to increase from 7% today to ~10% in 2022 and ~ 20% by 2025,” said Bernstein in a report last year.

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  • Bharat Doshi @Bharat Doshi
    Recent IPO has not done well on listing gain, but looks like Zomato IPO will have good listing as Post Covid too Indian will get used to new way of life like ordering food online. With biggest youngster population who don't mind paying for delivery service this new business will have good future.
    Like 0
  • Anil Das Devadasan @Anil Das Devadasan
    We think people will move to homely food.. But No. People will buy homely food.
    Like 0
  • Nikhil Mannapur @Nikhil Mannapur
    When it's IPO is launching?
    Like 0
  • Nikhil Mannapur @Nikhil Mannapur
    When it's IPO is launching?
    Like 0
    • Deepak Verma @Deepak Verma
      Date is not announced yet.
      Like 0
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