Mumbai4 hours ago
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Tomorrow i.e. July 14 is a special day for investors in terms of public issue. The IPO of online food delivery company Zomato will open on the same day, which will remain open till July 16. Through this, the company is preparing to raise Rs 9,375 crore.
The story of starting Zomato is also very special, so let’s know …
Zomato was launched in 2008 by Deepender Goyal along with his office mate Pankaj Chadha. It happened that Deepender had gone to office as usual and was waiting for the menu to be served in the canteen. He realized that the menu was taking too long.
Then he scanned the food menu and put it on the Internet, so people liked it very much. From here he came up with the idea of such a website, in which people can get information about nearby restaurants. Deepender co-founded Foodibay with Pankaj in 2008, which was renamed Zomato in 2010.
How does Zomato work?
Zomato, an online restaurant aggregator, provides home delivery of food and groceries from restaurants to the customers. The website also has a review of the restaurant’s menu. Also does marketing for the restaurant. For this, Zomato has tied up with restaurants in every city.
Business spread in the country and abroad
Zomato’s business is in many major cities in the country including Delhi, Mumbai, Bangalore, Chennai, Pune and Kolkata. Apart from this, Zomato’s service abroad is in UAE, Philippines, South Africa, New Zealand, Turkey, Brazil and Indonesia, Portugal, Canada, Ireland. Apart from this, Zomato’s business is also spread in Australia and US.
Zomato has a debt of Rs 2,400 crore
Looking at the financial profile of the company, its total revenue was Rs 487 crore in the financial year 2017-18, which increased to Rs 2,743 crore in 2020-21. Presently the company is in loss of Rs 2,385 crore. The company decided to go public for debt repayment and general corporate requirements and moved the market regulator SEBI.
After getting the approval, Zomato has chosen July 14-16 for the IPO launch. According to the exchange filing, the price for investment in IPO has been fixed at Rs 72 to 76 per share. There will be one lot of 195 shares, for which you can apply. However, a retail investor can apply for a maximum of 13 lots. As per SEBI rules, you cannot invest more than Rs 2 lakh.
Rs 4200 crore raised from anchor investors
According to media reports, the company raised $560 million (Rs 4170 crore) from anchor investors a day before the launch of the IPO. For this institutional investors paid Rs 76 per share.
Info Edge holds the highest stake in the company
Zomato currently has investments by Info Edge including Quora Management, Tiger Global Management, Fidelity. The largest stake (18.4%) in the company is held by Info Edge, which will sell shares worth Rs 375 crore through offer for sale.