The Rs 9,375 crore Zomato IPO saw a strong investor response today(14th July 2021) as the issue crossed the half-way-mark by 3 pm on the first day of bidding.
By 3 pm, the issue had attracted bids for 39,98,37,165 shares, which was 56 percent of the issue size of 71,92,33,522 shares.
“The average order value of food delivery is consistently growing at 10 percent for last 2 years for the company with a good 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." experts say.
The experts are of the opinion that the listed peer group trades at hefty valuations. "Even as no profits are generated, they can sustain those market valuations based on user experience, market position and tech platforms," thry said.
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