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Is it a good decision to invest Zomato IPO?

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Is it a good decision to invest Zomato IPO?

We suggest investors to stay away and wait for the stock to decline to buy. Having said that, there is little doubt that the brand of zomato is solid. However, at these levels the stock is not a good buy. The IPO had opened for subscription on July 14, in a price band of Rs 72-76 per share.

Why is Zomato going for IPO?

The major objectives of the IPO for Zomato would be funding organic and inorganic growth opportunities, and for general business purposes. The company is building its business-to-business (B2B) Hyperpure vertical to enhance the supply chain for raw material to restaurants.

What an IPO is and why it can be exciting?

An IPO allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes a share premium for current private investors.

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Is Zomato IPO good Quora?

With a blockbuster listing up by 73 per cent, Zomato’s IPO had an excellent start. Zomato might be a gold mine for investors hoping to profit from this IPO. In addition, given the Coronavirus pandemic, the Zomato IPO and the excitement around it are likely to have boosted investor confidence in the IPO market.

Why should we invest in IPO?

If it manages to sway the market and rake in profits, you would gain from its success too. IPO investments are equity investments. So, they have the potential to bring in big returns in the long term. The corpus earned can help you to fulfil long-term financial goals like retirement or buying a house.

How is zomato IPO doing?

Zomato is offering 1.23 billion shares, valuing the IPO at 93.75 billion rupees. For the year ended March 31, Zomato reported a loss of 8.16 billion rupees — an improvement from the previous year’s 23.86 billion rupee loss. But, the company’s revenue from operations slipped 23.46\% on-year to 19.94 billion rupees.

Who exited zomato?

Gaurav Gupta
Zomato co-founder and COO Gaurav Gupta has quit the company after six years. His resignation comes days after the company announced that it will shut its e-grocery business. Zomato co-founder Gaurav Gupta has quit the company.

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Why is IPO important?

An IPO is a significant stage in the growth of many businesses, as it provides them with access to the public capital market and also increases their credibility and exposure. The decision to go public is sometimes influenced by venture capitalists or founders who wish to cash in on their early investment.

What are the benefits of IPO?

Benefits of IPO investing

  • #1: Get in on the action early. By investing in an IPO, you can enter the ‘ground floor’ of a company with a high growth potential.
  • #2: Meet long-term goals. IPO investments are equity investments.
  • #3: More price transparency.
  • #4: Buy cheap, earn big.

Which is better Swiggy or Zomato?

Reviewers felt that Zomato meets the needs of their business better than Swiggy. When comparing quality of ongoing product support, reviewers felt that Zomato is the preferred option. For feature updates and roadmaps, our reviewers preferred the direction of Zomato over Swiggy.

Is it good to buy IPO?

You shouldn’t invest in an IPO just because the company is garnering positive attention. Extreme valuations may imply that the risk and reward of the investment is not favorable at the current price levels. Investors should keep in mind a company issuing an IPO lacks a proven track record of operating publicly.

What will be the valuation of Zomato after IPO?

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The Initial Public Offering of Zomato is expected to increase the value of the company. The dealers in the unofficial or grey market who trades in unlisted shares said that the valuation of the company could be around INR 53,000 crores.

What was the net loss of Zomato in the 9-month period?

The company reported a net loss of Rs 682 crore for the nine-month period ended December. MUMBAI: The most awaited IPO of the year has finally been set in motion, after food delivery aggregator Zomato on Wednesday filed draft papers with Sebi for its $1 billion issue.

Why is Zomato the most famous startup in India?

We guess that there is not a single internet user in India who has not seen craving ads of Zomato on Youtube and this makes them one of the most famous startups of India. Gurugram based food tech giant Zomato is the first startup in India of billion-dollar valuation going for an IPO.

Who is the largest stakeholder in Zomato?

Info edge the largest stakeholder in Zomato is selling all 1,244,029,200 equity shares and they will take 10\% of a complete issue in their bank accounts. Should you Invest in Zomato IPO? Before investing in any IPO or company you must go into details about their history, business model, competitors, USPs, and many more.