Online food and delivery startup Zomato on Thursday announced share prices for its initial public offering. With Rs 8,100 fund share and price per share at Rs 72-76, it will make Zomato more valued than Hero Motocorp, Torrent Pharma, or Piramal Enterprises. At the price band at which shares are up for grabs, Zomato could command a market capitalization, of Rs 59,623 core – 55th in the list of most valued companies in India.
Currently in the list of most valued companies in India, Hero MotoCorp, India’s largest two-wheeler company, is valued at Rs 58,221 crore and stands at number 55. Gland Pharms comes next with a market value of Rs
57,409 crore and Aurobindo Pharma with Rs 56,557 crore. The Gurugram-based Zomato, after the listing, is likely to take over them in terms of market value.
The IPO is open for subscription from July 14 to 15, will raise Rs 9,375 crore. As per a statement issued by Zomato, the proceeds of the issue will be used in funding organic businesses and to enhance the company’s technology platform.
Zomato is one the largest food delivery platforms however, it has a 99.3 per cent market share in the share of food orders from the mobile application, draft prospectus filed by the company with market regulator claimed.
In terms of its reach, it has 1,61,637 delivery partners and 1,31,233 restaurants on board. Total orders served in 2017-18 were 3.06 crore, which increased to 40.31 crores in 2019-20.
However, the technology startup is still running into losses and needs to infuse cash every year to remain in business. As per the financial information in the draft prospectus, the total revenue for the company in 2017-18 was Rs 466 crore, which increased to Rs 2,604 crore in 2019-20 – almost a four-fold rise. However, with revenue increase, losses are also mounting. For 2017-18, Zomato recorded a loss of Rs 106 crore, which increased to Rs 2,385 crore in 2019-20. Zomato’s Financial Performance
Online food and delivery startup Zomato on Thursday announced share prices for its initial public offering. With Rs 8,100 fund share and price per share at Rs 72-76, it will make Zomato more valued than Hero Motocorp, Torrent Pharma, or Piramal Enterprises. At the price band at which shares are up for grabs, Zomato could command a market capitalization, of Rs 59,623 core – 55th in the list of most valued companies in India.
Currently in the list of most valued companies in India, Hero MotoCorp, India’s largest two-wheeler company, is valued at Rs 58,221 crore and stands at number 55. Gland Pharms comes next with a market value of Rs
57,409 crore and Aurobindo Pharma with Rs 56,557 crore. The Gurugram-based Zomato, after the listing, is likely to take over them in terms of market value.
The IPO is open for subscription from July 14 to 15, will raise Rs 9,375 crore. As per a statement issued by Zomato, the proceeds of the issue will be used in funding organic businesses and to enhance the company’s technology platform.
Zomato is one the largest food delivery platforms however, it has a 99.3 per cent market share in the share of food orders from the mobile application, draft prospectus filed by the company with market regulator claimed.
In terms of its reach, it has 1,61,637 delivery partners and 1,31,233 restaurants on board. Total orders served in 2017-18 were 3.06 crore, which increased to 40.31 crores in 2019-20.
However, the technology startup is still running into losses and needs to infuse cash every year to remain in business. As per the financial information in the draft prospectus, the total revenue for the company in 2017-18 was Rs 466 crore, which increased to Rs 2,604 crore in 2019-20 – almost a four-fold rise. However, with revenue increase, losses are also mounting. For 2017-18, Zomato recorded a loss of Rs 106 crore, which increased to Rs 2,385 crore in 2019-20. Zomato’s Financial Performance
| Rs Crore | 2018 | 2019 | 2020 | 9M-2020 |
| Revenue | 466 | 1312 | 2604 | 1301 |
| Loss | 106 | 1010 | 2385 | 682 |
| Cash Used | 69 | 1742 | 2143 | 269 |
