The public issue (IPO) of online food delivery company Zomato has opened from today. Investors can invest in it till July 16. The company has fixed a lot size of 195 shares. To bid for one lot, an investment of Rs 14,820 will be required because the price band has been fixed at Rs 72-74 per share.
According to the draft red herring prospectus (DRHP) filing, the company will raise Rs 9,375 crore through IPO. After the IPO, allotment of shares will take place on July 26 and the shares will be listed on BSE and NSE on July 27.
According to IIFL, Zomato is on the verge of profit and value creation with 5x growth in earnings. It will be at 15% operating profitability by FY 2025. On this basis, investors would be advised to invest in IPO. IIFL believes that Zomato can do business at a valuation of around $10 billion based on the DCF analysis.
Zomato still has to grow further. However, it is showing strong growth on the digital platform. Zomato is adopting the technological infrastructure. Also, focusing on changing the demographic profile and technical infrastructure. Hence ICICI Securities is advising to invest in IPO.
At present, it is a bit difficult to predict the growth of Zomato for the next few years. Investors with high-risk appetites can invest money during listing for better returns.
Ventura Securities has advised subscribing to the issue. It says that smartphones are growing rapidly in the country and the lifestyle of people is such that they are getting interested in ordering food online. In such a situation, Zomato's income will increase from Rs 1,994 crore (FY21) to Rs 8,910 crore by FY2024. This IPO will increase the cash leverage of Zomato to Rs 15,000 crore.
Economics Research and Advisory advised investors to stay away from IPOs. The advisory said it has a long way to go for Zomato to make the right profit.
You can apply for 195 shares or in multiples thereof. However, a retail investor can apply for a maximum of 13 lots. As per SEBI rules, you cannot invest more than Rs 2 lakh.
Allotment will be done on 22nd July and refund will be done on 23rd July. That is, the shares will come in your Demat account by July 26.
You can find out about this from Link time India or the website of the company or the website of the stock exchange.
Allotment of shares will take place on the 26th. The listing will happen on BSE and NSE on July 27.
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