RPG Enterprises chairman Harsh Goenka on Saturday reviewed the success of Zomato’s food ordering and delivery company’s IPO, saying he wants to launch an app like Zomato or its competitor Swiggy, and will provide food at a 40 percent discount with a loss of “only “3,000 crore.
Goenka, who is very active on Twitter, said on the microblogging platform, “If you think the loss is less, I will give a 60% discount. Then I will list it on Rs 1 lakh cr.”
Zomato’s initial public offering (IPO) was a great success, with the HRK 9,375 million issue subscribed 38.25 times. It received offers for 2,751.25 crore of equity shares compared to an IPO size of 71.92 crore of equity shares.
The portion intended for small investors was subscribed 7.45 times, while non-institutional investors submitted bids 32.96 times against their reserved portion. The part intended for employees is 62 percent subscribed, and the part of qualified institutional customers (QIB) 51.79 times.
Although many commentators have called the successful IPO of Zomato a new phase for the Indian startup ecosystem, not everyone has subscribed to this view. Many analysts have asked questions about the company’s estimates because they believe its path to profitability is not clear.
In terms of finances, Zomato is a loss-making company. In fiscal 2021, it suffered a loss of 816.42 kroner, in fiscal 2020 2,385.60 kroner, and in fiscal 2019 1,010.51 kroner.
The Indian market has recently been hit by an IPO, and many new-age companies are planning to enter the market. Although Paytm is planning its IPO this year, digital payment firm Mobikwik has also submitted draft papers to SEBI for an IPO of HRK 1,900 million.
Paytm reported losses of 1,704 kroner in 2020-21, 2,943, 2019 and 4,235 kroner in 2018-19. Since many Indian consumer technology companies are suffering losses, not everyone is excited about their stock listing plans.