The Buzz About Zomato IPO, And Should You Invest?

Zomato’s IPO is worth 9375 crores, and the public offering includes a fresh issuance of equity shares worth 9,000 crores. 

Zomato’s IPO has sparked such a buzz among investors that the company has moved up the issue date and increased the offered size by 20% after receiving an initial reaction. 

The offer will be available for two days from July 14.

What’s The Buzz with Zomato’s IPO?

Zomato is India’s first significant large listing from totally digital space, and it’s one of the first of its sort. Zomato is a popular brand among Gen-Y, and with the Covid scenario, it has also gained traction among the middle-aged and older population.

it’s becoming a price discovery for a lot of other digital companies as to how the market or investors at the large value this business. 

What exactly is an initial public offering (IPO)?

An IPO is an Initial Public Offering. Many privately-held companies in India are not publicly listed. Any company that is listed on the stock exchanges allows the general public and money managers the option to become shareholders in that company.

An IPO is when a company sells its stock to the general public to be listed on the stock exchange.

To know more about IPO and how should you start investing in an IPO: Read more here.

Zomato IPO: is it a good investment for first-time investors?

Whether or not to invest in an IPO is a personal decision. 

It is always recommended for first-time investors to look for professional advice and research the business and dangers involved to maintain good investing hygiene. 

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Is it good to invest in a start-up IPO?

There are companies in India that we have never heard of. The digital space is purely commercial. It will take time to establish baseline pricing. Many IT businesses were listed in India in 1994, and initial public offerings (IPOs) were a new concept at the time. 

They took their time to demonstrate relevance, and today many IT companies are doing well. Again, during the 2004-2008 booms, several real-estate businesses got listed in India, and there was no idea of valuation at the time.

Such enterprises also created wealth for investors, and these businesses are giving attractive prospects in the current environment. It’s now up to you whether you want to put your money into well-established companies or new startups that are rising. 

As new-age startups are likely to grow significantly in the next 20-30 years, investors will gain new experience.

Let’s sum it up

When it comes to investing in equity as an asset class, you should be patient. Do your homework correctly and short-term signs or volatility will have little impact on your long-term vision of a company. 

You need to be well-informed before making any investments.

Everything you need to know about Zomato’s IPO

Zomato’s IPO is worth 9375 crores, and it includes a fresh issuance of equity shares worth 9,000 crores. It’s a 375-crore offer for sale. The offer’s price range has been set at 72-76 per equity share.

It will be open for subscription from July 14 to July 16, with the IPO share allotment expected to be completed around July 22. Around July 23, 2021, the money will be reimbursed or unblocked from the ASBA account.

The money will be used to fund organic and inorganic growth projects in Zomato, to fund the regular business operations. 

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