Zomato IPO: Should You Place An Order To Buy Shares ..

 Zomato IPO: Should You Place An Order To Buy Shares ..

today we discuss about In this article we discuss about Zomato IPO: Should You Place An Order To Buy Shares ..

is it worth to invest in zomato IPO 

and here is the table of content which we discuss in this article 

• market status (zomato IPO)
• Food casualty charts for demo 
• Profits of investing in zomato IPO
• Demerits of investing in zomato IPO
• Zomato revenue model
• Valuation chart 
• Profit loss chart
• My personal opinion about investment 

so without wasting more time let's get started 

MARKET STATUS  (zomato IPO)

important point that you should to note before buying zomato IPO

Two three important things the very first one about zomato IPO is something known as an anchor book

okay now 

what is an anchor book?

 there are certain investors who stand in the pool like an anchor you might have seen boats

 are being anchored to the shore so similarly these investors stay anchored to the issue so

 they are not allowed to sell right away post listing there is certain lock-in period for these

 investors like  tiger global Blackrock new world fund access mutual fund SBI mutual fund

 HDFC mutual fund many key players who have invested in this IPO and it may be noted that

 these funds raised through anchor investors are almost 45 percent of the total issue the

 company has already 55.2 to crore equity shares to the anchor investors so

is that a goo build up for anchor book 

answer is yes

second let's see what is the subscription status for zomato

  it's clear that listing is

 going to happen on both the NSE and BSE exchanges  so this was a small clarification that

 I wanted to give from the IPO size is huge it's huge it's 9375 crores worth IPO and still

it has gotten seven point six zero times over subscribe that's a big subscription for it all in all

 if you can check retail categories five point six seven times in the retail category 11.63

in the qib and 1.07 times in the  category so if you ask me is the subscription good enough

answer is yes if you ask me what about the financials they are not good right now

 companies into losses I've told you so many times this is the third video that i'm doing on

 the matter one was just understanding the business model second was understanding the

 financials and this is the third one will i apply or not so is this a high-risk IPO answer is yes

 company has been in continuous losses for those who believe that in the coming few years

 the delivery business can do really well number one number two if they feel that

how they are portraying themselves as a technology company who is going to bridge the

 gap between the restaurants and customers if you feel that this side of the business this line

 in the business can do really well in the coming few months /years then i think it's worth

 putting your money in this so i think it can be a long term story which you can look out for

zomato okay from the short term what may happen is there any space for listing games so

for that we always check this website IPO watch dot in which clearly mentions what is the

 current gray market premium current gray market premium as on 16th of july what you can

 see for zomato is 14 okay so the issue price is around 72 rupees 72 to 76  it's expected that

 14 rupees premium can be seen on listing so it's almost a 15 to 20 percent gain but does it

 happen that the moment your  GMP is 40 rupees it means mandatory you will get a

 premium of 14 rupees answer is no so there are chances though that it may list at a

 premium what can be the downside let's understand markets are at an all-time high right

 now  there right now if  it crosses 16000 then the next resistance level is at 16 200 but if it

 is not  able to cross 16000 we may see some sort of correction now on the listing day

 if the market mode is not good enough on top of that companies and losses then could there be a problematic situation

answer is yes

so again i'm repeating those who are risk takers those who have the capacity to take the

risks can go ahead and apply for this IPO  

food casualty charts 

profits of investing in the zomato IPO

Now let us discuss the pros of investing in this IPO...

Zomato has covered nearly all aspects of the restaurant food chain, from procurement to

 online delivery to advertisements and expected payment mechanism Zomato has shown 7x

 growth from FY18 as compared to the industry growth of only 3.6x Now let us discuss the

 network effect which is the benefit one gets when more and more people use it The more

 people use Zomato, the more restaurants will be listed  and will create a network

In fiscal 2021, Zomato's delivery partners fulfilled 94.1% of all orders with a median time

 of 30 mins in FY21 The company has an efficient and high demand hyperlocal deliver

 a network that can be monetized very  well Zomato is a strong consumer brand recognized

 all over India, People think of  food as soon as they listen to Zomato

loss of investing in zomato IPO

Let us now discuss the cons, the first being that the company is still not profitable

and will be the same for some time as their expenses are expected to increase

If Zomato enters the online grocery or payment aggregator business, it will burn a lot of cash which will

 delay its profitability Amazon and Big Basket with Tata sons are also entering the market which is

 tough competition The competition in the food delivery segment with Swiggy, Dominos, rebel foods

 will make prices and margins competitive The place where customers get the lowest rates

 will shift, meaning earnings and margins cannot be high The next is that it is backed by

" Jack Ma's Ant "

 Group and they say they will always be a foreign-owned and backed company Meaning

 they will have to fulfill  many requirements under the FDI policies Zomato has said that

 they might not be able to make use of any commercial business activity or investment with

 the Governments permission Right now the company  treats its delivery partners as independent

 contracts and pays them on a commission basis But if in the future, if a union is made or

 they are made Zomato employees, then the financial burden would increase and there will

 be a further delay in their being profitable

ZOMATO REVENUE MODEL 

Zomato was a restaurant discovery platform that used to tell us everything like dishes, menu, location, etc

It is the largest food-focused restaurant listing, reviews, and online table reservation platform in India

It makes money through those restaurants that pay them to improve their visibility

As of Dec 2020, it had 3.5 lakh active listings on its platform.

Other than this, it has an exclusive paid membership named Zomato pro which provides flat discounts on selected restaurants and dine outs

Hence, Zomato makes money from this membership too and as of Dec 2020, it had 1.4 million such members.

Zomato has a subsidiary company called hyperpure which provides raw materials to restaurants

It not only helps them to forecast demand but to source raw materials such as grains, fruits, and vegetables on a larger scale

but is a part of the bundle services aligned with food delivery

Zomato's revenue model

This business was started in 2019 and as of Dec 2020, it has supplied raw materials in 6000 restaurants

 in 6 cities And lastly, it makes money through food delivery. It acts as a delivery agent between

 restaurants and customers They take a commission from restaurants and delivery charge from

 customers They have operations in 23 countries other than India like UAE, Australia, New Zealand,

 Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Slovakia, and Poland

But the company's 90% revenue is generated from India only.

Traditionally, price-to-earnings is that the thanks to worth an organization. But, once it

 involves firms like Zomato, one has got to shun the normal ways that of evaluating worth.

 this can be as a result of an organization like Zomato continues to be within the part of

 growing and burning money. profit might still be your time away.

Globally, food delivery firms area unit valued on revenue metrics as most of them area unit

 loss-making even in mature markets. Zomato is priced at a premium to international peers

 given the large growth potential within the Indian market. Even the last spherical of

 funding was done at a premium to those international players. Compared to the last funding

 spherical (February 2021), at the upper-end of the value band – ₹ seventy six – the

 corporate is already posing for a premium of thirty first.

Zomato’s valuation for the most part hinges on the flexibility to sustain and fortify the leadership within the Indian market.

if we compare zomato's valuation chart 

zomato profit and loss chart 

MY OPINION ABOUT INVESTMENT ( ZOMATO IPO )

 Am i a sticker yes i do have a risk taking capacity am i going to apply for this IPO yes

 i have five Demat accounts out of five i'm going to apply through four Demat accounts so

i feel that i have the risk taking capacity i feel that i'm going to stay invested for a longer

 term perspective maybe you want to do  because even if i apply for from four i might get

 one or two maybe  depends on lottery system so i would be if i get the shares of this

company i would be holding it from a longer term perspective i would be checking out

quarter and quarter results and if i feel it's a promising one i may go ahead and hold it for a

comparatively longer time right so this is about the basic insights that i wanted to share

 about the company am i going to apply answer is yes out of

five Demat accounts i'm going to apply through 4 Demat accounts 

------------------------------------------------CONCLUSION-------------------------------------------

so here is our final conclusion is if you have money if you want to take risk you should to go for this 

IPO and one more thing if you are a short term investor and don't want to take any risk then please avoid this IPO 

Keep in mind one more special thing that new investors do not know, even if you are a long term investor, if you want to invest in this IPO, then the company is completely new inside the IPO, so let it perform first because many times it also happens If you think that you give it for long term but then you have to face loss due to fall in share price.

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>>>>>>>>>>>>>>>>>>>>>>>FAQ<<<<<<<<<<<<<<<<<<<<<<

• price per share of zommato ipo
        ans-: 72-76 rupees
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• ipo size and listing company
        ans-: 9375 cr.  (NSE, BSE)