IPO Alert: Zomato (Largest Indian FoodTech)

As Zomato heads toward launching its IPO, you may want to check some of its financials. Here is a summary of its recent financials picked from the DRHP:

Particulars Nine-month period ended Dec 2020 Fiscal 2020 Fiscal 2019 Fiscal 2018
Equity Share capital (in Rs. crores) 0.031 0.03 0.03 0.03
Net worth (Rs. crores) 6,330.07 2,083.10 2,596.75 1,207.85
Revenue from operations (Rs. crores) 1,301.34 2,604.73 1,312.58 466.02
Loss for the period/year (Rs. crores) (682.19) (2,385.60) (1,010.23) (106.91)
Basic earnings per share (8,496.65) (34,121.10) (16,027.31) (2,243.76)
Diluted earnings per share (8,496.65) (34,121.10) (16,027.31) (2,243.76)
Net asset value per equity share 78,863.30 30,026.70 43,130.82 26,140.47

Issue size

One of the existing shareholders of Zomato is a listed company - Naukri. It will be selling Rs. 375 crores of shares in the IPO. Zomato is planning to raise 9000 crores in form of a fresh issue of shares. This will make the IPO a Rs. 9,375 crore issue. In terms of the issue size, Zomato will be the largest IPO in India since the beginning of 2021.

Zomato vs Food Delivery Industry

Zomato seems to have grown 7x since 2018 compared to the 3.6x growth of the overall food delivery industry:

Growth Potential

Zomato has been growing at a very fast pace but how much headroom does the company have? This table comparing the total addressable markets in India, US & China may give us some indication:

Important Dates:

Issue Open Date : 14th July 2021 at 10 AM
Issue Close Date : 16th July 2021 at 5 PM

Amount needed to apply

Price Band: Rs 72 to Rs 76
Lot Quantity: 195 shares per lot
For individual retail investor, you can not apply for less than 1 lot. You can set the bid price within the band.
Amount Needed: 14892 per lot (assuming you apply for 1 lot at Rs 76 bid price)

How to apply?

  1. You can apply for Zomato IPO on IPO section within Niyo Money app. If you have not opened the Stocks & ETFs account already on Niyo Money, hurry up and open Stocks & ETFs account to access this feature.
  2. IPO application is a ASBA application using UPI mandate. You need to have an NPCI approved UPI handle which can process UPI mandate requests,

If you have the above things ready, you can apply for IPO on 14th July.

Disclosure: This is not a recommendation for subscribing to the IPO. The purpose is just to educate customers on the upcoming IPO.