Zomato IPO Opens Today : GMP, Share Price, Dates, and Should you Buy or Not?

Congratulations to those who applied and got shares

i got 1 out 5

I am not surprised that refuting your arguments in a logical manner looks like a wall of text to you.

It shows that you are not interested in viewpoints other than your own.

I do not wish to engage further in a pointless discussion with you. Let us agree to disagree and move on

If this was a social eco chember, your contrarian viewpoint would be censored/ridiculed the moment it was posted – just like China. I doubt that is the case here.

Cutting discounts may improve the profitability of a business, but does not guaranty its long-term survival. By cutting promotions, businesses can boost bottom-line revenue. But top-line would not grow if they fail to attract new customers. Stock market/VCs are ruthless with a new company that is not growing.

I believe businesses fall into the category of novelty, convenience and compulsion.

Jio-Airtel/Ola-Uber/Amazon-Flipkart had to burn enough discounts to move into compulsion category from convenience. Now, they can charge anything because we are literally forced to use them on a daily basis. A business can’t increase ARPU/price unilaterally unless they are in the compulsion category. No one would bat an eyelid if Amazon/Netflix increases subscription fees.

Customers need incentives (discounts) to continue supporting businesses in novelty and convenience category. Niki-Paytm have never became compulsion category candidates. They may have shot themselves in the feet by cutting cashbacks prematurely. Now they can neither attract new customers nor keep existing user base active.

Zomato-Swiggy, Pharmeasy-Netmeds are likely candidates for compulsion category. They just need to price out competitors. Pharmeasy has acquired Medlife and burning cash offering 30% discounts. Totally different sector but preferred weapon of choice: Discounts.

Indian consumers are fickle, love a bargain, want everything for free and are extremely price sensitive. Dimers are simply supporting the viewpoint that, without discounts it is difficult for businesses to thrive in India till they become part of a duopoly. Not because as bargain hunters they love discounts.

All viewpoints are welcome. At least refrain from insulting the intelligence of others in case you disagree with the core message of the discussion.

====
PS: Niki ARPU? They didn’t have a single use case except BPB offers where users would choose them over direct recharge platforms like Payzapp. NIKI’s business model of charging convenience fee on top was a total non-starter from the very beginning.

As of 16/07/2021 12:51PM
I am not convinced with Zomato’s overall subs figures (which is what i was expecting) hence i am not going to apply for this one. I would have thought of doing it if Chintan wasn’t round the corner next week. This is just my own personal opinion. If you have surplus cash to apply with high risk taking capacity then go for Zomato or else directly apply with full force in Chintan (still not yet completely decided but still 50% i am convinced).

Till then keep creating new demat acts (cdsl), keep doing SIP (CAMS), keep using your simply click cc (SBI CARD) & do keep shopping in outlets like Allen Solly, Pantaloons etc etc (ABFRL)

Keep minting money.
@guest_999 @malikcool @bikidas2060 @Luciferofhell @Tejaskale @BubbleBoyChickenLittle @silentOBSERVER @adrishya
@wontdisplaymyname
@ayushiiivijay

Zomato shares are always the best place to invest in. the stock is among the strong stocks and majority of the times it’s profitable.

No doubt Zomato is Dmart of Food supply but both the businesses are very different. It is very difficult to make profits here no matter how good you are.

Why buy a loss making company when there are so many good option.

@gandhitejasvi1507 @sharmajikaladkahu
Varsity app by Zerodha is the best for beginners. Highly recommended.

When hard-earned money is at stake, no recommendation to buy anything. Either learn the basics, or invest in mutual funds to let other professional fund managers manage your money.

https://www.valueresearchonline.com/...s/
https://www.mutualfundindi...m/

These two have a performance list of best mutual funds in India. I personally use them.

@pradeep.gr just mentioned my views, and they can be proven wrong too. Thanks anyway

How do i get start to learn everything about this stock market, share thing ? Like from Abcd to how to actual earn,cautions etc. ?
All these terms are alien to me.

LIC IPO is also similarly hyped. Let’s see how it is priced.

Very useful information! I was in sweet dreams until I read this post, specifically @bftb

Came across this humorous, witty and yet very informative article from Vijay Kumar Gaba on the stretched valuations of the upcoming IPOs in India. A good one to read with perhaps a cup of tea/coffee
https://www.moneycontrol.com/news/business/ipo/...

Anyone here bought Reliance Power and still holding?

I am holding 4K shares at average of 16.5… not sure I will be able to recover the loss or not

The moment Zomato cuts discounts, there will be a huge fall in its utility. Most people use it for discounts and a very few for convenience. So, I doubt Zomato will be profitable in the foreseeable future. It will continue to burn VC+IPO money. Investors have many better options in the secondary market to make money than Zomato ipo.

GMP falling day by day….. Today GMP is ₹6.5

I’m not applying this IPO.

I think Burger King IPO Jaisa List Hoga … Direct 100% Up

Nice thread..

yeh profit making company kab se hogayi?

Cant find any reason to buy this loss making company no development from starting to here and its the first delivery company coming into market they are just here to burn the cash thats it

Normally face values are at 10, So, the effective price range is 720-760. Not cheap, but very expensive for a loss making company. BRLMs made it to look like cheap because common public do not care about face value of a share.

Markets are highly overextended. US Fed raised interest rates recently. Petrol prices crossing 100 means stage is set for RBI to raise interest rates. Once that happens, markets may crash and a loss making company like this will sink to the bottom.

I may be wrong and this can probably touch 100 or beyond that after listing. But those who are borrowing to buy the IPO hoping to quickly offload it at 100, remember the Reliance Power IPO.

I believe in the company and the business model has great long-term potential. May enter in future when the cash burning cycle is over and the business starts to generate profits.

For me, Zomato valuation and current market conditions makes the IPO a tad expensive and risky.

Zomato esi dish jisme sab ingredients high quantity mai hai..but still sab taste test chahte hai
@bikidas2060

Why GMP so low , it should be like 100% ??

The highly awaited Zomato IPO is now ready to open for subscription. Moreover, it has accumulated Rs 4196 crores already from anchor investors. It is the first-ever Indian food-tech startup to be listed on NSE and BSE. Moreover, it is the best online food delivery platform currently in India which makes it a hot stock. Additionally, it is the 3rd biggest IPO of India behind SBI Card and Coal India. Its issue size is Rs 9375 crores out of which Rs 9000 crores of shares are from fresh issue and Rs 375 crore of shares are from offer-for-sale. Now, let's check its GMP today, Share Price, Dates, and more.

The Grey Market Premium of Zomato IPO or GMP Today is as shown in the table below. It was expected to start at an unimaginable high, but investors may have backed out as we see a very low GMP. You can Pre Apply Zomato IPO in the grey market.

||google_ad||

The share price of Zomato IPO is fixed at Rs 72 to Rs 76 per equity share. Its face value is Rs 1 per equity share. Therefore, its share price is amazingly low as compared to other IPOs of 2021.

Check out all the important dates related to the Zomato IPO of July 2021.

The lot size of Zomato IPO is 195 shares which makes a minimum investment of Rs 14,820. You can apply for upto 13 lots in multiples of 195. Therefore, you can subscribe for a maximum of 2535 shares at a price of Rs 1,92,660.

Zomato is an online food delivery service provider. It was started in 2010 and now is the leading online restaurants aggregator in India. It makes money via food delivery, Hyperpure (supplying food ingredients and kitchen essentials to restaurants), and Zomato Pro (loyalty membership). It operates in 23 countries including India. It has around 1.3 lakh restaurant tie-ups and 1.6 lakh delivery partners.

In FY19, Zomato had Rs 3413 crores in assets value while it rocketed to Rs 8703 crore in FY 20-21. However, its revenue dropped by around Rs 6k crores and profit to around Rs 150 crores in FY 20-21. The Zomato Balance Sheet 2021 is strong considering close down for dine-in at restaurants across the country.

Stay tuned for live Zomato IPO Subscription Status as it opens on 14th July 2021.

The Zomato IPO Listing Price might be somewhere around Rs 100 when it lists on NSE and BSE on 27th July 2021. Lets hope for the best. 

It is hard to understand why the Zomato IPO which was in huge demand when announced is now trading at very low margins in the grey market. Trading pundits believe that if anchor investors back this issue then it will probably succeed. Moreover, it does not have any peers listed in the stock market which makes it a strong stock for listing gains. Just like DMart, Zomato might play a vital role in long-term profits.

It will be interesting to see how the Zomato IPO fares in the stock market arena as it might decide the fate of upcoming tech startup IPOs such as Paytm, Delhivery, and more.