Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Thoughts on the IPO of Zomato

Prachi Bansal (3129 Points)

13 May 2021

what are your thoughts on the zomato IPO?

Reply
Follow
Share

6 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 May 2021

It’s not so bad. They hire staff all the time and saw deliveries 24/7. But no need to spend too much on infrastructure right now considering coffee day issues. Consumer tastes change. It isn’t better to run on franchising brand name. This ways, endemic employment can be fulfilled and administration is decentralised giving more flexibility for staff to join and leave for a better opportunity.

Upgrade to CAclubindia Pro. Subscribe Now!

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 May 2021

I mean it is better running brand name franchises

Prachi Bansal (3129 Points)
Replied 19 May 2021

how do you think it will affect the stock market prices?

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 19 May 2021

Intrinsic value formula = Value of the company / No. of outstanding shares

So how the business grows through infrastructure development, the share value goes up. There are other methods to find out price of share through dividend policies. Market cap will increase = share price*number of outstanding shares. It will not influence stock market prices apart from a portfolio if these shares don’t perform properly. Everything goes down when a customer doesn’t call zomato. Share prices will fall, and investors will go bankrupt and creditors will sew the company and employment loss.

Akshay Poriya ((artical assistant)) (313 Points)
Replied 31 May 2021

it is a very good company and a having a good market size in the online food delivery industry. the ipo coming in the future. it is hope that providing a reasonably high listing gain . one should after the fundamental analysis of company go for application to this ipo . it is very tempating to public for application if ipo prise is reasonably attcractive otherwise the higher valuation price leads to not a much big return.