By 4.30 pm, the difficulty had attracted bids for 74,79,51,360 shares, which was 104 per cent of the difficulty size of 71,92,33,522 shares.Nikhil Kamath, co-founder and CIO at Zerodha, said: “The average order value of food delivery is consistently growing at 10 per cent for last 2 years for the corporate with an honest market share. However, Zomato's valuation at 25 times FY21 EV/sales versus 10 times for global peers and 12 times for Indian QSRs look on the expensive side.
"Kamath said that the listed coevals trades at hefty valuations. "Even as no profits are generated, they will sustain those market valuations supported user experience, market position and tech platforms", he said.
The issue comprises fresh issuance of shares, aggregating up to Rs 9,000 crore, and a suggestion purchasable of up to Rs 375 crore by Info Edge. it's being sold within the Rs 72-76 price band.
Investors can subscribe the initial public offering (IPO) by betting for tons of 195 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots at the upper price band. The quota for retail investors in Zomato IPO is fixed at 10 per cent of internet offer. QIB quota is fixed at 75 per cent, while for NIIs the quota is reserved at 15 per cent.
At the upper end of the Rs 72-76 price band, Zomato IPO is demanding a trailing 12-month price-to-sales of 29.9 times, which is at a premium over the worldwide peer average, analysts said.
The valuation also appears expensive when seen from 25 times FY21 EV/sales basis, as global peers trade at a mean EV/sales of 9.6 times and domestic QSRs at 11.6 times.
Fundraising deals within the food delivery industry over the last 2-3 years also suggests Zomato, at a $9 billion valuation, is richly valued.
