At ₹76 per share, the upper end of the price band, Zomato will have a post-money valuation of ₹59,623 crore, which will rank it at 79th position among the top 100 Indian listed companies by market capitalisation
Mumbai: The much-awaited IPO of Zomato Ltd will see the country's largest food delivery platform enter the ranks of the top 100 most-valued listed companies on the Indian stock exchanges.
At ₹76 per share, the upper end of the IPO price band, Zomato will have a post-money valuation of ₹59,623 crore, which will rank it at 78th position among the top 100 Indian listed companies by market capitalization. In fact, Zomato will rank higher than some long-established and well-known names such as Hero MotoCorp, Gland Pharma, Aurobindo Pharma, Piramal Enterprises, Apollo Hospitals, SAIL, Lupin, Bandhan Bank.
The firm said that its initial public offering (IPO) will open on 14 July and close on 16 July. The issue price has been fixed at ₹72-76 a share. The issue comprises an offer for sale of ₹375 crore by the company's early investor Info Edge and a fresh issue of shares of ₹9,000 crore. The stock is likely to list on exchanges on 27 July.
In the grey market, it was quoting a premium of ₹14 per share, according to a dealer.
As of 31 December, Zomato had 3,50,174 active restaurant listings. In terms of table bookings, 12.2 million covers were booked through its platform in fiscal 2020. On an average, in fiscal 2020, Zomato had 131,233 active food delivery restaurants every month.
"Zomato IPO would mark the first meaningful Internet listing in India. With >80% contribution to revenues, food delivery is the bedrock, a two-player market now although more competition is possible. Covid-19 impacted revenues negatively but helped unit economics and sustainable level is unclear. Clarity is needed on usage of ~45% proceeds for M&A, nutraceutical foray etc. The technical factors may drive investor interest, which may have boarder implications,"said Jefferies India in a note to its investors.