Zomato IPO price, Zomato issue price, Zomato market cap, Zomato IPO market cap, Zomato IPO | Zomato’s market cap is closer to QSR companies than the total market cap of hotel companies

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Mumbai6 minutes agoAuthor: Ajit Singh

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  • The total market cap of listed hotel companies is 43 thousand crores.
  • The company has increased the issue size from 8,250 to 9,375 crores.

The IPO of Quick Service Restaurant (QSR) company Zomato will open on Wednesday and close on Friday. The total market cap of QSR companies listed in the country is Rs 60,112 crore. Whereas the total market cap of listed hotel companies is 43 thousand crores. If we look at the estimated market cap of Zomato, then it will be close to 60 thousand crores.

Jubilant Food has the highest market cap

Among QSR companies, Jubilend Food has the highest market cap of Rs 41,496 crore while that of Westlife is Rs 7,990 crore. The market cap of Westlife is Rs 7,990 crore while that of Burger King is Rs 6,058 crore. Barbecue Nation has Rs 3,324 crore. Similarly, Indian Hotels has a market cap of Rs 17,446 crore among hotel companies. This is the highest. EIH has a market cap of Rs 7,053 crore, Chalet Hotel has a market cap of Rs 3,893 crore, Mahindra Holidays 3,781, India Tourism has a market cap of Rs 3,392 crore, Lemon Tree has a market cap of Rs 3,351 crore.

Price is Rs 70-74

Its share price is 70 to 74 rupees. Zomato is the leading food service platform in the country. It is a consistent loss making company. The company has said in the draft submitted with SEBI that it can give losses even further. In such a situation the price of its share has been fixed, it is very expensive. The company will raise Rs 9,375 crore. Of this, 9,000 crore will be raised through new shares and 375 crore under offer for sale.

Increase the issue size

The size of the first issue was Rs 8,250 crore. It did this through 7500 crore new shares and 750 through offer for sale. The management claims that it has increased the size due to the excellent response received during the roadshow. Out of this, the company will spend Rs 6,750 crore on buying companies and growing the company. The sector in which Zomato operates is actually a fragmented sector. Although at the global level it is an organized sector. Zomato competes with Amazon and Swiggy.

Customer data is not secure

The company management constantly talks about keeping the data of the customers safe, but in the year 2017, 17 million data were stolen from its platform. This is the first major issue of the food service sector. However, there is no listed company in this sector in comparison. Globally, listed companies in this sector are valued at 8-9 times their revenue. While the valuation of Zomato is more than 16 times. So it is a very expensive issue.

use of service in corona

Since there is corona now, people are increasingly using its services. But after the end of Corona, how much demand for its services will be there, it is also a matter to think about before investing. Because people prefer to eat in hotels. Most brokerage houses consider this to be a very costly issue.

Offers service in 525 cities

Zomato currently serves 525 cities in the country. It has 3.89 lakh restaurants listed. It has service in 23 countries outside India. The company had revenue of Rs 1,397 crore in the financial year 2018-2019. There was a loss of 1,010 crores on this. In 2019-20, there was a loss of 2,385 crore on the revenue of 2,742. In 2020-21, there was a loss of Rs 816 crore on the revenue of 2,118 crore.

face value 1 rupee

The face value of its shares will be Rs. 25% share is reserved for Retail and High Net Worth Individuals i.e. HNIs. According to the upper value i.e. 72 rupees, the valuation of the company is 56 thousand 200 crore rupees. Zomato had submitted a draft to SEBI in April for the IPO and it was approved last week.

Can apply for 195 shares

You can apply for 195 shares or in multiples thereof. However, a retail investor can apply for a maximum of 13 lots. As per SEBI rules, you cannot invest more than Rs 2 lakh. In this, a share of Rs 933 crore is reserved for retail. That is, 10% of the total IPO will be available. QIBs will get the highest 75%. Employees will get 65 lakh shares.

Allotment will be on 22nd July

Allotment will be done on 22nd July and refund will be done on 23rd July. That is, the shares will come in your demat account by July 26. After allotment on 26th, it will be listed on 27th July. Zomato recently raised money by selling shares at a price of Rs 55-60. Then its valuation was 40 thousand crores. Right now it is Rs 56 thousand crores.

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