Nikhil Kamath on Zomato IPO | Zomato IPO Update

Nikhil Kamath has recently commented on Zomato’s IPO. The IPO has opened today on July 14 with the price band fixed at ₹72-76 per share and will close on July 16. After ten to eleven days, most probably on July 27, the shares are going to be listed on the stock exchanges. The issue comprises an offer for sale of ₹375 crore by the company’s early investor Info Edge and a fresh issue worth ₹9,000 crore.

Nikhil Kamath on Zomato IPO

Nikhil Kamath, Co-founder and CIO of True Beacon and Zerodha has commented on Zomato’s initial public offering, he said that
he is looking forward for the IPO as it is first ever IPO going to be listed in Indian market which belongs to food delivery and restaurant aggregator space.

”I feel markets are always ready to accept and accommodate good business, everything depends on how the company sustains its growth and profits going forward. The present time post Covid 2nd wave looks conducive for the IPOs.”

Nikhil Kamath, Co-founder Zerodha

Also See : Upcoming IPOs in 2021-22 India

”The average order value of food delivery is consistently growing at 10% for last 2 years for the company with good market share. However, Zomato’s valuation at 25x FY21 EV/sales versus 10x for global peers and 12x for Indian QSRs look on expensive the side. But, the listed peer groups of the world also trade at hefty valuations even though no profits are generated, they can sustain those market valuations based on user experience, market position and tech platforms.”

Nikhil Kamath, Co-founder Zerodha

Nikhil thinks that the Zomato IPO will inspire other Indian start-ups to go for IPOs in Indian markets, as Indian markets are the best platform for all the stakeholders, institutions, investors and customers.

”The market mechanism brings out the efficiency across all boards and is always forward looking in terms of growth and sustainability.”

Nikhil Kamath, Co-founder Zerodha

As per Zomato, On Tuesday they have raised ₹4,196 crore from several prominent institutional investors as part of an anchor book allocation, a day ahead of its public offering. This IPO, which will raise ₹9,350 crore at the top of the price band of ₹72-76, is one of the largest issues in India after the covid outbreak last year. At this price, Zomato will be valued at ₹59,623 crore, ranking 78th among listed firms in India by market value.