IPO stands for Initial Public Offering. It refers to when a company make its shares available for the public in a new stock issuance. It helps the company to raise capital from public investors to raise its business operations. Through this process a private company turns into a pubic company. It enables easy trading of existing holdings or future capital raising by becoming publicly traded. Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an initial public offering (IPO). After the IPO, shares are traded freely in the open market at what is known as the free float. Companies hire investment banks to market, gauge demand, set the IPO price and date, and more.
In order to apply for IPO, a company should have a net worth o $1 billion or a unicorn status. IPO gives company a lower cost of capital for debt and equity. It also increases company’s image, prestige which ultimately leads to raise in sales and profit. Companies hire investment banks to market, gauge demand, set the IPO price and date, and more. If adequate research is carried out investment in IPO can turn out very successful.
Zomato is one such unicorn company which is among the leading Food Service Delivery platforms. It has a strong network of 131,233 restaurants and 161,637 delivery partners. Zomato IPO is a main-board IPO of equity shares of the face value of ₹1 aggregating up to ₹9,375.00 Crores. The issue is priced at ₹72 to ₹76 per equity share. It was opened on July 14 and closed on July 16. A minimum of 1 lot consisting of about 195 shares and costing around 15000 rupees and a maximum of 13 lots consisting of 2535 shares and 192,660 worth of price can be taken.
You can apply in Zomato IPO online using either UPI or ASBA as payment method. The finalization of Basis of Allotment for Zomato IPO will be done on Jul 22, 2021, and the allotted shares will be credited to your demat account by Jul 26, 2021. The tentative date of Zomato IPO listing is Jul 27, 2021.