Zomato IPO (Initial Public Offering) is expected to get listed on the Bombay Stock Exchange on Friday above Rs 100 per equity price after oversubscribing 180 times. Analysts expect strong listings with 35 to 40 per cent minimum premium.
Abhay Doshi, founder of UnlistedArena.com, speaking on the IPO said, “With the improved sentiments in primary and broader market, I expect Zomato may list in three digits. Zomato’s listing will set a benchmark for upcoming startup IPOs, ” according to livemint.
Doshi added that the issue price of the IPO of Zomato, the online food delivery platform, issue price is Rs 72 to Rs 76 that means if we add Rs 27 in the public issue price, the expected listing price becomes Rs 103 ( Rs 76 + Rs 27), the website added.
This comes a day after Zomato’s mobile application and its website crashed, a day before its listing on the Bombay Stock Exchange (BSE). Taking to Twitter, Zomato tweeted, “Our app is down, due to a widespread Akamai outage. Our teams are working to ensure all orders placed are delivered asap.” Akamai is the internet infrastructure company, which is the centre of the issue, confirmed experiencing a “service disruption”.
Zomato launched its IPO on July 14, making it the first Indian unicorn start-up to feature on the bourses. The IPO was expected to boost Zomato’s market valuation by $9 billion.The company fixed its price band at Rs72–76 per share at the face value of Rs1 each. Ahead of the IPO, the anchor portion of the offer opened on Tuesday and Zomato raked in over Rs4,196 crore from 186 anchor investors.
Zomato’s core business offers two segments — food delivery and dining out. In its draft red herring prospectus (DRHP), Zomato said that it has consistently gained market share over the last four years and leads the food delivery space in India. Online food orders with the company surged from 30.6 million in 2018 to 403.1 million in 2020.