Nikhil Kamath, co-founder of Zerodha, is among scores of investors who are looking forward to food delivery platform Zomato’s Rs 9,375 crore initial public offering (IPO).
Kamath believes that the present time after the second wave of COVID-19 is ‘conducive’ for IPOs.
“I feel markets are always ready to accept and accommodate good business, everything depends on how the company sustains its growth and profits going forward,” he said, as quoted by Mint.
Read | Zomato IPO opens for subscription today: Should you place an order?
The Zomato IPO will remain open for subscription till July 16. At Rs 72-76 per share price band, the company aims to raise Rs 9,375 crore through the offer.
Commenting on the IPO, Zerodha founder said that the average order value of food delivery was consistently growing at 10 percent for the last two years for the company with good market share.
Read: Looking to invest in Zomato IPO? Here’s how you can do it via Zerodha, Paytm and Upstox
He also said that the IPO would encourage other Indian startups to go public as Indian markets are the best platform for all the stakeholders i.e., company, investors and customers.
“The market mechanism brings out the efficiency across all boards and is always forward-looking in terms of growth and sustainability,” Kamath said.
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Meanwhile, Zomato said on July 13 it had raised a little over Rs 4,196 crore from anchor investors ahead of its initial share sale. The company has decided to allocate 552,173,505 equity shares to anchor investors at Rs 76 apiece, aggregating the transaction size to Rs 4,196.51 crore, according to a circular uploaded on BSE website.
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The company backed by Jack Ma’s Ant Group Co will be among the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.
The restaurant aggregator has said it would utilise the net proceeds from the fresh issue for funding organic and inorganic growth initiatives (Rs 6,750 crore) and general corporate purposes.
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