Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Think Initial Public Offers (IPOs) are a sure-shot, quickfire method to make a quick buck? If so, then investing in some of India's biggest IPOs to date would have created multiple millionaires. However, if the data is to be believed, 18 out of India's top 30 IPOs by way of size have failed to deliver on the returns front. <br /><br />Recent data from Capitalmind PMS suggests that of all the mega IPOs India has seen in the past 2 decades, only 12 IPOs i.e. stocks of 12 companies have delivered more returns that what you would have received, had you bought and held your investments in Nifty500(which invests in biggest 500 companies by market size). <br /><br />Infact, Paytm (54%), <keyword id="20024191" type="General" weightage="20" keywordseo="Reliance-Power" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Power" meta.hostid="261" meta.entityid="Reliance Power">Reliance Power</keyword> (81%), General Insurance Corporation (2%) actually generated negative total returns to date. The only outliers in the list of top 10 IPOs were Zomato (listed in July 2021) and Coal India (listed in April, 2010), which managed to generate excess returns i.e. more than what was generated by Nifty500. <br /><br />While Zomato's total return to date, which is considered a comprehensive gauge of a stock's profitability, stands at 265%, Coal India total returns are a massive 443%. In these cases, had you simply bought and held the Nifty500 index for a similar duration, your returns would've been 73%, and 435% respectively. <br /><br />Also, 5 of the biggest IPOs India has ever seen (Bajaj Housing Finance, Bharti Hexacom, Brainbees, Ola Electric) have come in the last 2 years.<br /><br />In some cases, having stayed put in your index investments would have yielded you far better returns. Consider this, FSN E-Commerce, Nykaa's parent company, listed on the exchanges on November 2021. Its total returns till date have been 2%, while had you invested in Nifty500 index, your returns would've been 53%. Similarly, the total returns to date on Bandhan Bank's stock, which listed in March 2018, was a negative 43%. But, the index has delivered a whopping 163% returns during the same time. <br /> <br /><strong><u>Hits and Misses<br /></u></strong><table class="redcator-table-advance"><tbody><tr><td><strong>Company Name</strong></td><td><strong>Total Returns to Date (In %)</strong></td><td><strong>CNX (Nifty500) Returns (In %)</strong></td></tr><tr><td>Reliance Power (Feb 2008)</td><td>-81</td><td>961</td></tr><tr><td>Zomato (July 2021)</td><td>265</td><td>73</td></tr><tr><td>Gland Pharma (November 2020)</td><td>14</td><td>124</td></tr><tr><td>NHPC (September 2009)</td><td class="se-table-selected-cell">389</td><td>961</td></tr><tr><td>Indian Railways Finance Corporation (January 2021)</td><td>582</td><td>109</td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><em>Source: CapitalMind PMS<br /></em><br /><h2>Surge in IPOs? Not really <br /></h2>It is impossible to overlook the sheer number of public offerings seen in the Indian markets over the past 2 years. Around 600 share sale offers have already hit the market since 2023. Out of these, 335 have come in this year, as of October 2024. While over Rs 50,000 crores have been raised by these share sales so far since 2023, only 22% of these funds raises have come from companies who are hitting the market for the first time i.e. bringing out their IPOs. The rest have come from already listed companies seeking to raise more funds.<br /><br />The biggest IPO that India has seen to date, that of <keyword id="19906087" type="General" weightage="20" keywordseo="Hyundai" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai" meta.hostid="261" meta.entityid="Hyundai">Hyundai</keyword> Motor India, closes for subscription today. With an offer size of Rs 27,870.16 crore, it is 35% bigger than the previous biggest IPO in the country(LIC in May 2022). <br /><br />As of 12:30 pm today, Hyundai's offer had been 87% subscribed, with significant interest from QIBs and employees. At 0.43x, participation of retail investors remained largely subdued.  <br /><br />Notably, an IPO is considered cancelled and withdrawn, if it fails to meet the 90% subscription threshold.<br />

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

Food and grocery delivery behemoth <keyword id="6358977" type="General" weightage="20" keywordseo="Swiggy" source="Orion">Swiggy</keyword> is on a roll, pushing out multiple new services simultaneously, ahead of the festive season, and its much-touted Rs 11,664 crore IPO. Experts anticipate the IPO to hit the bourses in the upcoming months.<br /><br />Earlier last week, the company's shareholders had approved of raising the fresh issue component of the IPO, from Rs 3,750 crore previously to Rs 5,000 crore. This will allow Swiggy to add an extra Rs 1,250 crores to its coffers for future growth. The remaining Rs 6,664 crore will be an OFS (offer for sale), largely paving a way for Swiggy's old investors to exit.<br /><br />In the buildup to its IPO, the delivery giant is dialing up the competitive fever big time with rival <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword>, which went public in 2021. Swiggy recently launched <keyword id="23440051" type="General" weightage="20" keywordseo="XL-Fleet" source="keywords">XL Fleet</keyword> for large-scale <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> and Bolt, which is an <keyword id="23461052" type="General" weightage="20" keywordseo="AI-powered-logistics" source="keywords">AI-powered logistics</keyword> system. Per some media reports, the company is also launching an invite-only concierge membership program called the "Rare Club", which will have an annual fee of up to Rs 50,000. <br /><br /><h2>Who doesn't love a little pettiness? </h2>But that's not it. In the time being, Swiggy is also aggressively looking for ways to gain maximum public attention, one of which is by sponsoring the fourth season of the popular entrepreneurial reality show <keyword id="11924074" type="General" weightage="20" keywordseo="shark-tank-india" source="Orion">Shark Tank India</keyword>. But here's the catch-a key condition of this deal is to not bring back Zomato CEO <keyword id="19901325" type="General" weightage="20" keywordseo="deepinder-goyal" source="keywords">Deepinder Goyal</keyword> as a shark. <br /><br />Media reports suggest that Swiggy is set to close on a massive Rs 40-60 crore sponsorship deal with the show. But in a seemingly low-ball move, Swiggy has blocked the return of Zomato CEO Deepinder Goyal as one of the investors on the show. Goyal had made his debut on the third season of the show, and was looking to make a comeback alongside long-time regulars such as Anupam Mittal, Aman Gupta, Namita Thapar and Peyush Bansal. <br /><br /><h2>Bolting ahead with XL</h2>In a move that clearly underlines its ambitious expansion plans, Swiggy also recently announced the launch of its new XL Fleet service, which will look to cater exclusively to bulk orders and large-scale food deliveries. Per Swiggy's co-founder Nandan Reddy, XL is a natural evolution of Swiggy's services. As it is, a recent report by Bain and Company highlighted that India's food services market is set to double to a massive Rs 9 trillion by 2030, surging up significantly from its current standing of Rs 5.5 trillion. <br /><br />Not just that, the customer base is also set to expand from 320-340 million as of 2023 to 430-450 million by the end of the decade. Earlier this year, Zomato had also stepped in this segment by launching its large-order electric fleet, which could serve orders for a gathering of up to 50 people. <br /><br />Alongside this, Swiggy has unveiled Bolt, which is an AI-powered logistics system specifically designed to optimize delivery routes, predict demand patterns, and improve overall operational efficiency. The aim is to bring down on delivery time and costs, giving Swiggy a massive competitive edge in the growing food and quick delivery market. With this feature, Swiggy claims that users can get certain meals such as burgers, <br /><br /><h2>Challenges Await </h2>As of FY24, Swiggy's operating revenue stood at ₹112.5 billion, a 36% jump from the previous year. The company also managed to reduce its net losses by as much as 44% to ₹23.5 billion. While these may come across as positive signs, which are also pushing the company's unlisted shares to new heights, Swiggy significantly lags behind Zomato in both food delivery and quick commerce segment. <br /><br />Consider this. Per Morgan Stanely, as of FY24, Swiggy's GOV (gross order value) at Rs 24,700 crore, was far lower than Zomato's Rs 32,200 crore. Swiggy's GOV and AOV grew at a CAGR of 15.5% and 2.5% respectively, between FY22-24. In contrast, Zomato's GOV and AOV registered a CAGR of 23% and 3.7%, respectively. <br /><br />At 12.7 million, Swiggy's MTU (monthly transacting users) for FY24 were also a far cry behind Zomato's 18.4 million. Even when it comes to average order value (AOV), Swiggy's Instamart lags behind Zomato's Blinkit. This is also why analysts believe that despite Swiggy narrowing the gap on most key metrics like AOV, GOV and more, the company's share will command a lower valuation than that of its rival Zomato. <br />

Ahead of much awaited IPO, what is Swiggy upto? Launching XL Fleet, premium membership and kicking out Zomato CEO

<ul><li>The food delivery unicorn has filed the draft red herring prospectus for a $1.1 billion initial public offering (IPO) with the bourses.</li><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> is offering equity shares worth ₹8,250 crore, out of which ₹7,500 crore will be a fresh issue, while ₹750 crore is an offer for sale from one of its earliest backers Info Edge.</li><li>Zomato was last valued at $5.4 billion.</li></ul>Zomato has finally moved the <keyword id="63783" type="COMPANY" weightage="20" keywordseo="Securities-and-Exchange-Board">Securities and Exchange Board</keyword> of India (SEBI) for its much awaited public market debut. The food delivery unicorn has filed the draft red herring prospectus for a $1.1 billion initial public offering (IPO) with the bourses. <br /><br />Zomato is offering equity shares worth ₹8,250 crore, out of which ₹7,500 crore will be a fresh issue, while ₹750 crore is an offer for sale from one of its earliest backers Info Edge.<br /><br />      <div type="image" title="stake" msid="82286618" hostid="261"></div><br />Founded in 2008 by Deepinder Goyal and Pankaj Chaddah, the startup’s IPO has been one of the most awaited ones in the Indian tech ecosystem. The firm had made several changes in its management and administration ahead of the market offering – from naming Goyal as a managing director for the next five years to converting itself from a private company to a public limited company - Zomato Limited. <br /><br />Zomato, last valued at $5.4 billion, had also raised funds over the year as it prepared for the market debut.<br /><br /><strong>Zomato’s recent fundraising spree</strong><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kora Management, Fidelity Management, Tiger Global, Bow Wave Capital Management and Dragoneer Investment Group<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$250 million<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February, 2021<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tiger Global<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$102.5 million<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September, 2020<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Temasek<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$62 million<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September, 2020<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pacific Horizon Investment Trust<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April, 2020<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ant Financial<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$150 million<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">January, 2020<br /><br /></td></tr></tbody></table><br />The company has also said that it may go for a pre-IPO placement for an aggregate amount not exceeding worth ₹1,500 crore. “The Pre-IPO Placement, if undertaken, will be at a price to be decided by our Company in consultation with the Managers and will be completed prior to filing of the Red Herring Prospectus with the RoC,” the company said. <br /><br />The food delivery giant has grown at least 3 times over in the last four years. Revenue at the end of December 2020, for the preceding 9 months, was ₹1,301 crore, compared to ₹460 crore for the fiscal year ending March 2018.<br /><br />    <div type="image" title="zomato loss" msid="82287127" hostid="261"></div><br />The company also said that it expects the costs to increase over time and “losses will continue given significant investments expected towards growing our business”.<br /><br />Zomato’s IPO comes in the middle of a gruelling second wave of the COVID-19 pandemic in India, which has disrupted the restaurant industry but also boosted online food delivery. Zomato, over the last year, had said that the COVID-19 pandemic had pushed it closer to profitability and that is seen in its DRHP filing.<br /><br />  <div type="image" title="zomato unit economics" msid="82287485" hostid="261"></div><br />“In terms of the size of the business, COVID-19 has set us back by a year or so – but a year is only a small blip when you are building a company for the next 100 years,” wrote Zomato CEO Deepinder Goyal in a <a href="https://www.zomato.com/blog/performance-report">blog</a> last year<br /><br /><strong>Zomato is a major player in India’s massive online food market<br /></strong><br />Zomato along with its top rival Swiggy are the major players in the online food industry. As per a CLSA report, the Indian foodtech industry is expected to grow to $11 billion over the next five years – of which the Swiggy currently holds a 47% market share, while Zomato holds 45%. <br /><br />A new entry Amazon is also expected to make a mark in the market. Zomato, in January 2020 had acquired one of its rivals UberEats. <br /><br />The growing competition in the food delivery industry was not missed by Zomato in its DHRP filing. “Our current and future competitors may enjoy competitive advantages, such as greater name recognition, longer operating histories, greater category share in certain markets, market-specific knowledge, established relationships with local restaurants or local delivery businesses and larger existing customer bases in certain markets, more successful marketing capabilities, and substantially greater financial, technical, and other resources than we have,” said the company.<br />

Zomato reveals its much-awaited IPO plan and it’s worth $1.1 billion

<ul><li>Zomato’s shares get listed at ₹116 on the NSE, translating into a 51% premium. </li><li>The company launched its initial public offering last week, at a price band of ₹72-76.</li><li>Zomato’s issue was oversubscribed by 38 times.</li></ul>Zomato made a strong debut on the stock exchanges on Friday, July 23, as its shares opened at ₹116 on the national stock exchange (NSE). This represented a premium of 51.32% over the issue price of ₹76. <br /><br />At 10.18 a.m, Zomato shares were trading at ₹132.00 on the NSE, up 72%. Zomato ended the first day of trade about 8% above the listing price, at ₹125.30.<br /><br />The company’s market cap stood at ₹1.06 lakh crore at 10.16 a.m. <br /><br />Zomato was supposed to make its stock exchange debut on July 27, but the company preponed its listing date by four days to Friday. The company launched its initial public offering (IPO) last week between July 14 to 16 at a price band of ₹72-76. <br /><br />The minimum order bid was kept at one lot of 195 equity shares. At a price of ₹76 per share, one lot cost up to ₹14,820.<br /><br />Zomato’s issue was oversubscribed by <a href="https://www.businessinsider.in/business/startups/news/zomato-ipo-to-open-on-july-14-with-shares-priced-at-72-76-apiece/articleshow/84226269.cms">38 times</a>, as it attracted bids for 2,751 crore compared to the issue size of 71.9 crore shares. The shares reserved for Qualified Institutional Buyers (QIBs) were oversubscribed by 51 times. Meanwhile, Non-institutional investors' reserve was oversubscribed by 32 times and Retail Individual Investors (RII) share was oversubscribed by seven times. <br /><br />“The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business,” Zomato’s CEO Deepinder Goyal, wrote in a blog post earlier today.<br /><br />A day before its public listing, on July 13, Zomato raised <a href="https://www.businessinsider.in/business/startups/news/zomato-raises-4197-crore-from-186-anchor-investors-oversubscribed-by-35-times/articleshow/84399035.cms">₹4,197 crore</a> from 186 anchor investors. The company had allotted 55.22 crore equity shares to these anchor investors for ₹76 per equity shares to some marquee investors like Government of Singapore, Morgan Stanley Investment Fund, Tiger Global Investment Fund, Baillie Gifford Pacific Fund and more.

You Searched For "Zomato public offer" and got 4 results

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

Ira Alok Puranik

Ahead of much awaited IPO, what is Swiggy upto? Launching XL Fleet, premium membership and kicking out Zomato CEO

Ira Alok Puranik

Zomato reveals its much-awaited IPO plan and it’s worth $1.1 billion

Sanchita Dash

Zomato makes a strong public market debut at 51% premium

Kritti Bhalla

Popular Keywords

Buying Guides