This intrigued me and I confess to having looked up, not so much the Zomato stock and its valuation, but the Food Delivery Business it is engaged in.
There is a big buzz about the Zomato IPO. The online food delivery service has caught the investors’ eye and the Rs 9,375 crore offer has seen over-subscription 38.24 times.
Zomato's initial public offering (IPO) last week ended with a bumper 38 times subscription. The IPO of Zomato was India's biggest initial share sale offer since March 2020.
The stock made its debut at Rs 115, reflecting a huge gain of 51.31 per cent against the issue price on the BSE.
This comes close on the heels of the closure of competitor Zomato's mega initial public offering (IPO) which gives Zomato a valuation of Rs 64,365 crore.
Sooner than later, they may get into benchmark indices like the Sensex or the Nifty. That is what drives a lot of long-term investors like mutual funds and pension funds to invest.
Zomato has proposed to open its bid offer for institutional/ retail investors on stock exchanges from July 14-16, earlier than the proposed dates, signalling a peaked interest from the market.
Last year, Zomato founder and CEO Deepinder Goyal had told employees that the company was planning to go for an IPO in the first half of 2021.
Amazon’s entry into the food delivery segment signals bad news for both Zomato and Swiggy as has been the case with the US e-tailer’s competitors worldwide.