Zomato IPO: Know how to invest and place bid through mobile apps

Zomato, the online food delivery platform, launched the much-awaited initial public offering (IPO) on Wednesday. The company plans to raise ₹9,375 crore through the IPO – the biggest so far this year -- that will be open for subscription till July 16 at a price band of ₹72-76 per share.

Backed by Jack Ma's Ant Group Co, Zomato is first among online food aggregators and also the first from a list of Indian unicorn startups to launch an IPO. The IPO will give Zomato a valuation of ₹64,365 crore and is being touted as the second-biggest since SBI Cards and Payment Services' ₹10,341-crore issue in March 2020.

Zomato IPO included fresh equity worth ₹9,000 crore and an offer for sale (OFS) of ₹375 crore from its promoter Info Edge. The company has also set aside approximately 6.5 million shares for its employees.

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Retail investors can bid for a minimum of 195 equity shares and, thereafter, in multiples of 195 equity shares. Given the size of the lot, the retail investors can apply for a minimum of ₹14,820 worth of shares and a maximum of ₹1,92,660 shares at the higher price band of ₹76 for each equity share.

How to bid for the Zomato IPO:

Retail investors can use online trading and brokerage apps such as Paytm Money, Zerodha and Upstox to participate in the bidding process of Zomato IPO.

Through Paytm Money:

Paytm Money allows users to place their bids through the mobile application. The Zomato IPO is the first such public issue that was launched on the brokerage platform.

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The process to bid in the IPO is very simple. One needs to download the app and login with their Paytm credentials, complete the KYC process, then select the Zomato IPO option and fill in their investor details, enter the lot size and accept the mandate on the UPI app.

Through Zerodha’s Kite app:

Log in to the Zerodha’s mobile application and select the IPO option from the tab. Next, select Zomato IPO and enter the UPI ID from the Google Pay or BHIM app; in the next step select the ‘investor type’ for your application and enter the lot size; tick on the cut-off price for better chances of allotment of shares. In the final step, click on confirm and submit the application. Accept the mandate request for proceeding with IPO on the Google Pay or BHIM UPI app.

Through Upstox mobile app:

After logging in to the Upstox application or website with credentials, select Zomato IPO to proceed. Enter the UPI ID. In the next step one can add up to 3 bids within the price range – ₹72 to ₹76 – and select the number of shares before confirming the application. Finally, accept the UPI mandate and block funds on the UPI app.

The three-day subscription period will end on July 16. If the shares in the bid are allotted then the amount would be deducted from the UPI-enabled bank account. Otherwise, the booked amount would be refunded on July 23 or onwards. The Zomato IPO is expected to be listed in the open market on July 27.