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Zomato listing today LIVE: Grey market premium soars takes share price above Rs 100; but watch company losses.

 By: FE Online | 

Updated: July 23, 2021 9:21:07 am

Zomato share market debut LIVE: Zomato, an online food ordering platform is all set to make its stock market debut on Friday, 23 July 2021, days ahead of its earlier schedule of 27 July.

Zomato listing today LIVE: Grey market premium soars takes share price above Rs 100; but watch company losses.



Zomato IPO is the largest to hit Dalal Street since SBI Cards and Payment Services’ Rs 10,341-crore IPO in March 2020. Image: Reuters

Zomato IPO share listing LIVE: Zomato, an online food ordering platform, is all set to make its stock market debut on Friday, 23 July 2021, days ahead of its earlier schedule of 27 July. The Rs 9,375-crore IPO was sold in a price band of Rs 74-76 a share during 14-16 July. The mega public issue of the food-tech unicorn saw a subscription of over 38 times, receiving a robust response from all pockets of investors. The issue had received bids for over 2,751 crore equity shares against the 71.92 crore shares on offer. Zomato’s IPO is the first Indian internet unicorn to make its stock market debut. This much-awaited public issue is the largest to hit Dalal Street since SBI Cards and Payment Services’ Rs 10,341-crore IPO in March 2020. Even as Zomato is a loss-making company but analysts say that this had no impact on IPO investors. “Effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” the BSE said in a notice.

“I don’t know whether we will succeed or fail,” Deepinder Goyal tweets ahead of Zomato listing

The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best, Deepinder Goyal tweets ahead of Zomato listing

If Zomato does not continue to innovate, its business, results of operations could suffer

If Zomato does not continue to innovate and further develop its platform or its platform developments do not perform, or it is not able to keep pace with technological developments, it may not remain competitive and its business and results of operations could suffer. Failure to detect and deal effectively with any fraud perpetrated and fictitious transactions conducted on ZL’s platform could harm the business. HDFC Securities

Zomato to invest in new products, technologies

Zomato will invest in new products, technologies, and features for the benefit of the customers. It is in the process of rolling out nutraceutical products on its platform. It continues to innovate to offer higher personalization and new experiences to its customers while continuing with its sharp focus on machine learning to achieve this objective. Axis Securities

Will Zomato shares list at over Rs 100?

With the improved sentiments in primary and broader market I expect Zomato may list in three digits. However, for long-term view one must have to keep continuous track of performance as this is not an ‘Invest and Forget’ kind of story. Zomato’s listing will set a benchmark for upcoming start-up IPOs. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares

Zomato grey market premium surges further just ahead of share listing

Zomato shares were quoting at a premium of Rs 29 apiece just ahead of listing, from Rs 19, earlier this week. The shares were trading at Rs 105 apiece, implying a premium of over 38 per cent over the IPO price of Rs 76, according to the people who deal in shares of unlisted companies. 

Zomato has a history of net losses, may not able to sustain growth rates

Zomato has a history of net losses and it anticipates increased expenses in the future. Zomato may not be able to sustain its historical growth rates, and its historical performance may not be indicative of its future growth or financial results. If it fails to retain its existing restaurant partners, customers or delivery partners or fail to add new restaurant partners, delivery partners or customers to our portfolio in a cost-effective manner, its business may be adversely affected. HDFC Securities

Zomato is loss making company, will continue to report losses over medium-term

Investors looking to invest in Zomato should bear in mind that it is a loss-making company and the company has clearly indicated that it will continue to report losses over the medium-term. INDmoney said in a report

Zomato likely to command higher valuation

At the higher end of the price band, Zomato IPO is roughly priced at a Mcap/ Sales of 28 times (based on FY21 data). This is  much higher than its global peers DoorDash and DeliveryHero. As the online delivery space remains under-penetrated, Zomato is expected to command a higher valuation in India (scarcity premium). INDmoney said in a report.

Zomato’s inability to sustain historical growth rates

Zomato may not be able to sustain historical growth rates and historical performance may not be indicative of future growth or financial results. Almost all aspects of business, in particular food delivery, have experienced rapid growth in recent year. To grow business, the company will need to work with existing and an increasingly large number of new restaurant partners, delivery partners and other participants in network efficiently and establish and maintain mutually beneficial relationships with them. Axis Securities

Rakesh Jhunjhunwala no fan of Zomato, other tech unicorns; says current bull market won’t vanish

Ace investor Rakesh Jhunjhunwala is not looking to jump on the new-age technology IPO bandwagon but believes there is more opportunity in metal stocks and domestic banks. Speaking at Motilal Oswal AMC’s Global Partner Summit, the big bull said that he is bullish on every aspect of the Indian economy and domestic markets except the new-age internet companies that have begun their journey towards Dalal Street with Zomato’s IPO last week. Apart from Zomato, the financial services behemoth Paytm has also started mapping its stock market journey, filing the draft IPO papers last week.

Zomato IPO share allotment: Check status online via BSE, Link Intime websites; grey market premium surges 31%

Zomato IPO share allotment has been finalised on Thursday, 22 July 2021. The online restaurant discovery and food delivery platform IPO, which was launched last week, saw strong demand from investors, subscribing 38.25 times on the final day. In the grey market on Thursday, Zomato shares were quoting at a premium of Rs 23.75 apiece, from Rs 19, earlier this week. The shares were trading at Rs 99.75 apiece, implying a premium of 31.25 per cent over the IPO price, according to the people who deal in shares of unlisted companies. 

Zomato shares to list on Friday

Online food ordering platform Zomato, which last week closed its mega initial public offering raising over Rs 9,000 crore, will list on the stock exchanges on Friday, days ahead of its earlier schedule of the next week. “Effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” the BSE said in a notice.

 

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