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Home >Opinion >Quick Edit >Zomato’s hot plate

A day after Zomato saw as many as 186 anchor investors pump around 4,195 crore of fresh equity capital into the company, its initial public offering of shares worth nearly 5,200 crore got fully subscribed. The online food-delivery platform received bids for 1.05 times its issue size on Wednesday, with two days still to go. With this, its market value is estimated to have risen to nearly $8 billion.

This is an eye-popping number for any company, let alone one that began just over a decade ago. That investors are upbeat about its prospects is amply clear, but this enthusiasm is inseparable from a broader investor appetite for slices of tech startups. Many fortunes in the US have been made on early stock bets in this space, but India has seen the benefits of app successes accrue mostly to private equity players. That has begun to change, with several unicorns ready to go public. Expected soon is the IPO of Paytm, a payment app that hit a near jackpot after demonetization. More are on their way. These are businesses attracting money, not for dividends, which may take time to materialize, but market value appreciation. So long as people get a serving of all this hot new wealth creation, that’s fine.

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