PRESENTED BY: PARVESH YADAV, SHUBHI JOSHI,

UMESH MITTAL, ROHAN GUPTA

WHAT IS AN IPO AND REASONS
WHY COMPANIES GO IPO
An IPO is an initial public offering. In an IPO, a privately owned
company lists its shares on a stock exchange, making them
available for purchase by the general public.

Reasons why companies go with IPO:

• Companies can raise additional capital by selling shares to the
public.
• Going public in an IPO can provide companies with a huge
amount of publicity.
• Other avenues for raising capital, via venture capitalists,
private investors or bank loans, may be too expensive
Founded in 2008, Zomato is a leading platform for
restaurant search & discovery, online food ordering, and
restaurant table reservations. The company was founded by
Deepinder Goyal and Pankaj Chaddah and is headquartered
in Gurgaon (officially Gurugram). Zomato has been a pioneer
in food ordering and restaurant discovery in India, which
has benefitted both restaurants and customers.
• Funding: Zomato has received investments worth
$443.8 million through 10 rounds of funding.

• Acquisitions: Zomato has acquired several

companies over the years; with the most notable
being the acquisition of US based Urbanspoon in
2015.

• Competition: Zomato competes with other

restaurant discovery and food delivery platforms
such as Swiggy, Dine out, Grubhub, Yelp, DoorDash,
Just Dial, etc.
ZOMATO IPO
ZOMATO IPO
 CONT…
CONT.…
• Institutional investors with a 52
times oversubscription of the
part reserved segment.

• non-institutional (high net-worth

investors) portion in the Rs.
9375 cr IPO was subscribed
around 33%

• Retailers subscribed around

7.5% of the IPO Shares.

• 40.5 lakh shares were taken

over by the employees of
Zomato
RISK in ZOMATO IPO
• It is been a loss
making company since
fy:2018

• Revenue in FY19 and

FY20 has decreased

• Covid-19 has effected

the business
negatively
EXPERT’S ON ZOMATO
“In terms of operating risk, the company, in spite of its global
ambitions, is still primarily an Indian company, dependent on
Indian macroeconomic growth to succeed, and my rupee cost of
capital will incorporate the country’s risk. Zomato is a
 money losing company, but it is not a start-up, facing imminent
failure. On the plus side, its size and access to capital, as well as
its post-IPO augmented cash balance, push down the risk of
failure,”
states Damodaran.
 Conclusion
Zomato’s IPO is very likely to get oversubscribed on
the first day itself. There is no doubt about that. It
is a brand that most of us love, respect, and rely
on. A quick interview with some of Zomato’s
delivery partners in our area gave us an idea that
they are happy with all perks and remuneration.
There is a lot of room for growth in the food
services industry in India, and Zomato will continue
to expand its operations.

Due to oversubscription and a favourable grey

market premium (GMP), investors of the IPO are
likely to receive substantial listing gains. 
THANK YOU