NEWS| Zomato’s INR 60,000 crore IPO valuation creates buzz
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Zomato’s IPO is set to be open from July 14 to July 16 at a price band of Rs 72-76. The enhanced offer size is about Rs 9,375 crore. Interestingly Zomato’s valuation at IPO, at about Rs 60,000 crore, is equivalent to the market value of all the quick service restaurants (QSRs) listed on Indian bourses.
The valuation of food delivery major Zomato that’s going public through an IPO with an indicative market capitalization of around INR 60,000 crore, has been a topic of much discussion on social media with many raising an eyebrow if it’s really worth that much.
People have mixed views. For some, a tech-enabled company should be valued differently to a traditional company despite its losses. For some, the IPO is a harvest opportunity for venture capital & private equity investors to offload their liability to retail investors, while some believe Indian food tech companies will reflect valuations earned by their global peers like DoorDash to a significant investor extent.
Zomato’s IPO is set to be open from July 14 to July 16 at a price band of INR 72-76. The enhanced offer size is about INR 9,375 crore.
Interestingly Zomato’s valuation at IPO, at about Rs 60,000 crore, is equivalent to the market value of all the quick service restaurants (QSRs) listed on Indian bourses. Its value is also more than the market value of all the listed hospitality chains operating in the country. This second list includes the behemoth like Indian Hotels that run the iconic Taj chain of hotels in India and abroad, and also Oberoi Hotels.
India has half a dozen listed quick-service restaurants with a combined market value of Rs 60,712 crore and about 20 listed hospitality companies with an aggregate market capitalization of Rs 44,000 crore.
