Zomato IPO listing Allotment Subscribe Status Food Delivery
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Zomato IPO allotment
On July 16, 2021, at 5:00 PM, 38.25 times subscribed for the Zomato IPO listing. The retail category received 7.45 subscriptions, the QIB category 51.79 subscriptions, and the NII category 32.96 subscriptions for the public issue.
About Zomato ltd
As of March 31, 2021, Zomato was among the top Food Services platforms in India in terms of the value of food sold, according to RedSeer. Zomato had 32.1 million average monthly active users in India during the fiscal year 2021. As of March 31, 2021, the company had 389,932 Active Restaurant Listings and was present in 525 Indian cities. According to App Annie's estimates, Zomato was the most popular food and beverage app in India during the past three fiscal years, from fiscal 2019 to fiscal 2021, on both the iOS App Store and Google Play combined. As of March 31, 2021, the firm had a presence in 23 countries outside of India, but Zomato has made a strategic decision to limit its attention to the Indian market moving ahead. A targeted Zomato, according to the firm, will increase value for all stakeholders given the size of the Indian market opportunity.
Zomato Ipo(Initial Public Offer) Subscription Status
Category Subscribe Status
Qualified Institutional (QIB) 51.79Times
Non-Institutional (NII) 32.96 Times
Retail Individual 7.45 Times
Employee 0.62 Times
Total 38.25 Times
Key Points of Zomato:
Food delivery companies have generally prioritized hyper-expansion without much attention to profitability, but the pandemic has demonstrated that such business models may achieve profitability on a unit economics basis. We anticipate Zomato to continue focusing on growth while exercising caution with regard to profitability. In our opinion, the market for meal delivery has not yet developed to the point where businesses can begin prioritizing profitability over expansion.
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Making an app that sells only food, or the Indian Meituan?
Zomato is likely the only scaled-up app with dining and delivery services that can compete with Yelp, DoorDash, and OpenTable in a single app. Additionally, it is evolving into a food-tech super app that serves a sizable portion of the consumer food chain through its B2B supply business, Hyperpure, and prospective entry into B2C supermarkets through Grofers. With US$2 billion in the capital following its IPO, Zomato may, in the long run, concentrate on international growth while also experimenting with Meituan's approach to providing travel and other services.
Strong enough entry barriers, no place for a third player:
To get to where they are now, Zomato and Swiggy have each raised more than US$4.5 billion. Some businesses with experience in food delivery, such as Food Panda and Uber Eats, have already left the Indian market. We think the food delivery industry requires a laser-like focus to generate returns and cannot be developed as an adjacency to another horizontal venture. Consequently, there is little threat from a third, well-funded participant. In order to establish a sustainable foundation, a new player would also need to compete with already-available products and differentiate on grounds other than price.
Risks: The business has a history of net losses and anticipates higher costs going forward.
The commercial and financial performance of the company has already been impacted by the COVID-19 pandemic or a comparable public health danger, and those effects could get worse. Failure to attract new restaurant partners, delivery partners, or consumers, as well as failure to keep current restaurant partners, customers, or partners, could have a negative effect on the firm.
Blinkit is set to be purchased by the food delivery platform for $4,447 crore in an all-stock transaction.
According to a BSE filing, the shareholders of rapid commerce firm Blinkit (previously Grofers) approved Zomato Ltd.'s intention to purchase it.
About 97% of the votes cast were in favour of the agreement. Blinkit will be acquired by Zomato in an all-stock deal for 4,447 crore ($570 million). It would buy up to 33,018 equity shares from Blinkit and distribute up to 62.85 crores fully paid-up equity shares to Blinkit shareholders at the price of 70.76 per share.
Compared to Blinkit's $1 billion unicorn valuation in 2021, the Blinkit acquisition occurred at a discounted valuation. The Blinkit team and CEO Albinder Dhindsa will continue to run the business after the acquisition as an independent corporation and app. stockholders.
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Disclaimer: This article is for information only and should not be considered as recommendation to buy or sell any stocks.