Sumary of Zomato IPO: Will the market debut match the offer response?:
- Despite the higher valuation, analysts expect a strong listing on the back of significant jump in grey market premium in last few days, positive market sentiment, earnings surprise by Jubilant Foodworks in Q1FY22, and the first mover advantage in the food delivery segment along with expected financial improvement.
- The IPO share allotment has been finalised on July 22, and the process of refunds and transfer of shares is likely to get completed on the same day, given the preponing of share listing on July 23.”We believe that improved market sentiment along with earnings surprise in Q1FY22 from Jubiliant Foodworks created positive impact on this sector.
- We expect IPO to open beyond Rs 100 which is quite reasonable listing for this venture,” Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.
- Nikhil Shetty, Senior Research Analyst at BP Wealth feels despite pricing the IPO at an inflated valuation, there is a possibility of 25 percent listing gain, which translates to a listing price at Rs 95 per share.
- Astha Jain, Senior Research Analyst at Hem Securities and Prashanth Tapse, VP Research at Mehta Equities expect Zomato to start the day with 20-25 percent and 25-28 percent premium respectively on Friday.
- HNI on the last day of offer changed the grey market premium to Rs 21. Zomato has well planned to list it early looking at the recovery in the secondary markets which argues for a good listing gain candidate,” said Prashanth Tapse, VP Research at Mehta Equities.
- He further said, “Premium listing seems to be justified as the investors are keen to invest in India’s ‘FIRST OF ITS KIND’ business which is gaining a lot of interest for a business model which is rapidly increasing footprints in online food businesses.
- The qualified institutional investors provided healthy response to the issue as their reserved portion was subscribed 51.79 times, while that of non-institutional investors’ portion saw subscription of 32.96 times and retail 7.45 times.