IPO (Initial public offering) of Zomato

Initial public offering (IPO) is a public offering issued by private companies to raise capital from general public to become a public limited company. The details are made available to the investors in the form of prospectus. A lot of money, in crores of rupees is invested by the retail investors in the Indian capital market through IPOs. The private companies are unable to raise their capital because of the limited investors. Therefore, they are converted in to the public limited companies by offering initial public offering to the general public Zomato is also offered IPO to the general public to increase their capital. For this it has listed in both NSE and BSE. The company offered IPO in the month of July 2021 by following book building method. The share price of the company is RS 76 per share. the company procured 9375crores by issuing IPO. The new issue of this IPO amounts to 9000crores whereas the offer for sale is set at Rs 375 crores. The company expects that the profit of the company increases in coming years. This belief leads them the investors to invest in IPOs every time they are offered regardless of their actual valuation.