Zomato IPO Day 1 Subscription: The IPO of online food delivery company Zomato has opened for subscription today. A large number of investors are showing interest in Zomato’s IPO. The IPO has been subscribed 1.38 times in the first day till 12 noon. The IPO will close on July 16. The company plans to raise Rs 9375 crore through the issue at a price band of Rs 72-76 per share. Even before the opening of the IPO, the company has raised Rs 4196 crore from 186 anchor investors on Tuesday.
Zomato is an online restaurant aggregator. It delivers food and other items from the restaurant to the customers. The company also provides photos and reviews of restaurants and hotels. Under this, marketing is also done for the restaurant. The company has no promoter. However, the company’s investors include Info Edge, Ant Financials and Uber.
This is the first online food aggregator company, which has come up with an IPO. Based on the IPO, the valuation of Zomato works out to Rs 64,365 crore. It is believed to be the second highest IPO after SBI Cards and Payment Services (Rs 10,341 crore) which came in March 2020. It is believed that it will overtake the Indian Railway Finance Corporation (IRFC) IPO in January.
In the financial year 2020, there was a 96 percent increase in the revenue of Zomato. The company’s revenue in FY 2019 was Rs 1398 crore, which increased to Rs 2743 crore in FY 2020. Zomato received at least 403 million online orders, with a gross order value of 11,221 crore during the financial year 2020. Last year, Zomato provided delivery services in around 500 cities across India with over 2 lakh delivery partners.