|Rs.72-Rs.76per Equity share||Recommendation: Subscribe|
Company Profile: –
Zomato is a restaurant aggregator and food Delivery company having two core business-to-customer (B2C) offerings (i) Food delivery and (ii) Dining-out. In Addition to B2C offering it also operate a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners. On an average, 1.07 crore customers ordered food every month on Zomato platform in India in FY20 with an average monthly frequency of over three times. As of December 31, 2020, there were 350,174 Active Restaurant Listings on Zomato platform in India. On an average it had 131,233 Active Food Delivery Restaurants every month in FY20. Apart from it, it had 161,637 Active Delivery Partners during the month of December 2020. Its dining-out offerings helps customers to search and discover restaurants, book a table and make payments while Dining-out at restaurants. It started Hyperpure in 2019 which is growing rapidly. In the month of December 2020, it supplied ingredients and kitchen products to over 6,000 restaurant partners across six cities in India. It has experienced rapid growth in food delivery in India with orders increasing by 13.2 times from 30.6 million in FY18 to 403.1 million in FY20. The Company saw a significant impact on its food delivery business in India in first quarter of FY21 due to COVID-19 pandemic which hit its GOV (Gross Order value) lowest in two financial years. However, since then, its food delivery business has recovered strongly with the GOV in the third quarter of FY21 was Rs. 2981 Crore which was the highest GOV that it had achieved in any quarter till December 2020.
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|Objects of the issue||· Toexpand the business via inorganically and organically
· To meet General corporate Purpose
|Issue Size||Issue Size – Rs.9,375 Crore
Fresh Issue- Rs.9000 Crore
Offer for Sale-Rs.375 Crore
Rs.1 Per Equity Share
|Issue Price||Rs. 72– Rs. 76|
|Bid Lot||195 shares|
|Issue Opens:||14thJuly 2021 – 16thJuly 2021|
|QIB||75% of Net Issue Offer|
|Retail||10% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
Positive outlook of the Firm:
- End-to-end Food Services approach makes it the most unique Food Services platform
- Operate one of India’s largest hyperlocal delivery networks, based on number of delivery partners
- Zomato is a strong consumer brand recognized across the length and breadth of India
- Have a Technology and product-first approach to business
Objective of the Issue:
- Funding organic and inorganic growth initiatives
- General corporate purposes.
Promoters of the company:
- Company is a professionally managed company and does not have an identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act.
Check Zomato Ltd. IPO Allotment Status
Zomato Ltd. IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
|Particulars (in Rs. Cr.)||As at/ for the year ended December 31, 2020||As at/ for the year ended March 31, 2020||As at/ for the year ended March 31, 2019||As at/ for the year ended March 31, 2018|
|Net cash inflow/ (outflows)||83||(49)||113||51|
|Shareholding Pattern||Pre- Issue||Post Issue|
Source: RHP,,EWL Research,
- Focused on Reduction of Cost and improved growth.
- Well Recognized Brand.
- Fast Delivery and Hyper-local Network for Delivery.
- Total Income in FY21 Stood at Rs. 2118 crore as compared to Rs.2743 crore in FY20 witnessing the negative growth of -22.76% Y-o-Y but it has witnessed a CAGR growth of 23% from FY19 to FY21.
- Adjusted EBITDA in FY21 stood at Rs. -325 Crore vs Rs. -2206 Crore in FY20.
- In Q4FY21, Gross Order value (GOV) stood at Rs.3313 Crore witnessing 11% growth Q-o-Q and 23% Y-o-Y.
- Advertisement and Sale promotion expenses in FY19, FY20, FY21 stood at 88.43%, 48.80% and 24.88% as a % of sales.
- In FY21, Unit Economics per unit Stood at Rs.20.5 as compared to Rs. -30.5 in FY20.
- NAV per Equity Share Stood at Rs.15.09 as of 31st March,2021.
- Company has a history of Net losses and it Could continue in the future If covid situation get to worsen in the future.
- Company business could severely affected if it unable to retain its Restaurant Partners, Delivery Partners in a cost-Efficient manner.
Zomato is a consumer centric Food service platform company focused on providing services like Food Delivery, Dining out, B2B Supplies and Premium Customer service like Zomato pro.Company saw a significant impact on its food delivery business in India in first quarter of FY21 due to COVID-19 pandemic which hit its GOV (Gross Order value) lowest in two financial years. However, since then, its food delivery business has recovered strongly with the GOV in the fourth quarter of FY21 was Rs. 3313 Crore which was the highest GOV that it had achieved in any quarter till march 2021.Company witness strong cost control, improving GOV and Net Positive Economic Unit that shows strengthen in the company. After Covid-era the digitization in the country was game changer as it increases consumption of Internet and Switching from Traditional phone to smartphone will become new normal. As of 2020,Indian online food delivery market penetration stood at 8%-9% and online food delivery users are 8% this shows there is a more ample of headroom to grow for Zomatoand as the internet penetration and smartphone penetrationtaking pace rapidly worldwide the TAMS(Total Addressable Market Size) for Zomato will be another advantage in the future. Thus, We advise for listing gains, howeverless risk averse investor cansubscribe an IPO for the long term considering the future prospect of the company.
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SEBI Registration No.: INM000010718
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