New Delhi: Life Insurance of India (LIC) is mulling an investment in the Zomato’s initial public offering (IPO), according to Hindustan Times report. Zomato IPO will open on July 14, and will culminate the subscription process on July 16.
- LIC may bid for shares in the Zomato IPO. LIC generally takes part in the investment of secondary markets or an IPO which is part of the Central governments’s disinvestment programm, the HT report says.
- The investment committee of LIC is set to hold a key meeting, according to the HT report.
- The valuation of Zomato IPO is expected at around Rs 60,000 crore. This will be an indicative market capitalization, as per media reports.
- Meanwhile, Chairman RPG Enterprises Harsh Goenka has expressed surprise at the high valuations being denoted to Zomato despite continuing losses while large hotel and restaurant chains are languishing, according to IANS report.
- “Can anyone explain to me – Top 20 hotels including global Indian hotel brands – Total Market cap – 44,000 crs. Top 6 QSR chains serving millions of consumers – Total Market cap- 60,000 Crs. ZOMATO – Continuing huge losses. Hold my vadapav! Market cap – 60,000 Crs ???,” Goenka said in a tweet.
- Zomato had a net loss of Rs 682 crore for nine months of FY 21, as per IANS report.
- Zomato IPO price band has been fixed at Rs 72 to Rs 76 per equity share.
- Bids can be made for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter, according to IANS report.
- Zomato IPO will witness fresh issue aggregating up to Rs 9,000 crore and an offer for sale (OFS) by Info Edge (India) Ltd aggregating up to Rs 375 crore, the IANS report says.
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