23 Jul , 2021 By : Kanchan Joshi
MUMBAI: Zomato Ltd became one of the top 50 most valuable publicly traded firms in India after the company's shares debuted on the stock markets a with a 53% premium on Friday. The food delivery unicorn listed at Rs116 apiece on the stock exchanges compared to the issue price of Rs76.
At 10:10am, the stock traded at Rs135.50 apiece on the BSE, up 76% from the issue price, with marker capitalisation of over Rs1 trillion. Its market cap is now higher than that of its promoter Info Edge India.
Reliance Industries Ltd is the most valuable company in India, followed by Tata Consultancy Services Ltd (TCS) and HDFC Bank Ltd.
Zomato's market capitalisation is higher than the likes of Vedanta, Mahindra & Mahindra, Adani Total Gas, ICICI Prudential Life, Dr Reddy's Lab, Coal India, SBI Cards, Hindalco Industries, Berger Paints, Britannia Industries, DLF, Ambuja Cements, Indusind Bank, Cipla, Eicher Motors, Marico.
The much-hyped initial public offering (IPO) of Zomato was subscribed 40.38 times. The offer received bids for 29.04 billion equity shares against 719.23 million equity shares on offer.
The IPO, which aimed to raise Rs9,375 crore at the upper of the price band of Rs72-76, had opened for subscription on 14 July. It had raised Rs4,196 crore from anchor investors, where marquee investors were allotted 552.17 million shares at Rs76 each.
In FY21, Zomato recorded 32.1 million average monthly active users, of which 6.8 million MTUs (monthly transacting users) placed transactions. It is present in 525 cities in India, with almost 150,000 active food delivery restaurant listings and 170,000 active delivery partners at the end of FY21.
Its FY21 revenues fell 24% to Rs1,993 crores, while the number of orders declined 41% to 239 million, but average order value rose 43% year-on-year to almost Rs400. An increase in the frequency and number of food deliveries due to lockdowns along with lower discounts and fees to delivery partners led to losses falling to to Rs490 crore (excluding exceptional item) in FY21 from Rs2,251 crore in FY20.
Zomato is listed at a revenue multiple of 27 times its FY21 revenues whereas global peers trade in the range of 3-19 times price to sales. However, the opportunity and scope of further growth is significant for Zomato, analysts say.
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