Each week has something to look forward to 😊; this week it was all about the much awaited IPO from the food delivery app Zomato. It’s difficult not to have this brand as a part of our daily life esp. in Bangalore; every weekend we order food in and Zomato delivers. On certain weekdays, maybe it’s too hectic to cook and it’s again Zomato to the rescue! And their tweets are the most engaging 😃
But being an avid user can’t be the only reason to be a investor in the company. 12 years into operations, Zomato is clocking in revenues, but is yet to make profit. The IPO subscription opened on 14 July and closed on 16 July; price band was fixed at Rs 72 to Rs 76 per equity share and the minimum number of shares to be applied is 195 (1 lot) and thereafter in multiples of 195.
So did I apply? Yes !
People all around had polarized views on subscribing for the IPO with the intention of holding for the long term. One view is that, it’s a tech company and it’s the new age technology companies that are driving growth, if we look at the US markets. But others ask, where are the profits, how will they sustain long term? But if it is just for the listing gains, then it was go go all the way as the IPO was oversubscribed on Day 1 ! And predictably the Zomato share listed at a premium of 52% from the IPO price. And did I make a profit ? No, because I did not get any shares from the subscription !
Zomato IPO was oversubscribed 38 times ! It’s one of the trail blazers in the start-up ecosystem and will be eagerly watched. Now Zomato will have to publish the financial reports q-o-q and investors will be waiting to see how things play out. There are many other start ups queuing up for IPO and lot of action in the markets !! But for now, it’s Saturday and time for me to order lunch via Zomato !
Till next post, take care !!