<p>A Rs 9,375 crore stock offering by Indian food delivery startup Zomato, backed by China's Ant Group was almost eight times oversubscribed before the offer closed later on Friday, as investors placed bets on a fast-growing sector.</p>.<p>The IPO, first in India's food delivery space, is priced at Rs 72 to Rs 76 per share, giving it a valuation of as much as $7.98 billion.</p>.<p>Bids by big institutional investors were 12 times the shares on offer for their category, market data showed.</p>.<p>Before the IPO opened this week, Zomato raised Rs 4,186 crore million from 186 big financial investors, including marquee names such as Tiger Global, BlackRock, JPMorgan and Morgan Stanley.</p>.<p>Investors are placing bets on Zomato even though it has flagged in its IPO draft prospectus that its costs and losses would continue to rise as it ramps up investments towards business growth.</p>.<p>"There is insane demand and a lot of excitement," said Jimeet Modi, founder of Indian brokerage Samco Securities. "Retail investors are looking at this from a listing gains point of view."</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/blockbuster-ipo-memes-reveal-emotion-amid-india-s-unicorn-frenzy-1009087.html" target="_blank">Blockbuster IPO memes reveal emotion amid India’s unicorn frenzy</a></strong></p>.<p>The Zomato IPO comes when India's markets are near their all-time highs and there is growing interest from digital companies to list on bourses.</p>.<p>Alibaba-backed financial payments app Paytm on Friday filed draft papers in India for a $2.2 billion IPO, while Walmart's e-commerce giant Flipkart is also planning one.</p>.<p>Just like U.S.-based DoorDash, Zomato is mainly a food delivery app, having partnered with 350,000 restaurants and cafes in 526 Indian cities. It also allows customers to book tables for dine-in and write food reviews and upload photos.</p>.<p>Zomato competes with local rival Swiggy, which is backed by Softbank, and Amazon's still nascent food delivery service in a food delivery market that Boston Consulting Group expects will touch $8 billion by 2023, from just $4 billion last year.</p>.<p>The Zomato app has 41.5 million customers using its service on an average every month, and orders on its platform surged to 403.1 million in the year 2019-2020, from just 30.6 million in 2017-2018, its draft IPO prospectus showed.</p>.<p>While the Zomato IPO is seeing strong investor interest, some analysts said the company's valuations were too high, especially because the company does not make profits.</p>.<p>Himanshu Nayyar, an analyst at India's Yes Securities, has said in a research note that Zomato's IPO price range was "really expensive", as "its path to profitability is still not clear."</p>
<p>A Rs 9,375 crore stock offering by Indian food delivery startup Zomato, backed by China's Ant Group was almost eight times oversubscribed before the offer closed later on Friday, as investors placed bets on a fast-growing sector.</p>.<p>The IPO, first in India's food delivery space, is priced at Rs 72 to Rs 76 per share, giving it a valuation of as much as $7.98 billion.</p>.<p>Bids by big institutional investors were 12 times the shares on offer for their category, market data showed.</p>.<p>Before the IPO opened this week, Zomato raised Rs 4,186 crore million from 186 big financial investors, including marquee names such as Tiger Global, BlackRock, JPMorgan and Morgan Stanley.</p>.<p>Investors are placing bets on Zomato even though it has flagged in its IPO draft prospectus that its costs and losses would continue to rise as it ramps up investments towards business growth.</p>.<p>"There is insane demand and a lot of excitement," said Jimeet Modi, founder of Indian brokerage Samco Securities. "Retail investors are looking at this from a listing gains point of view."</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/blockbuster-ipo-memes-reveal-emotion-amid-india-s-unicorn-frenzy-1009087.html" target="_blank">Blockbuster IPO memes reveal emotion amid India’s unicorn frenzy</a></strong></p>.<p>The Zomato IPO comes when India's markets are near their all-time highs and there is growing interest from digital companies to list on bourses.</p>.<p>Alibaba-backed financial payments app Paytm on Friday filed draft papers in India for a $2.2 billion IPO, while Walmart's e-commerce giant Flipkart is also planning one.</p>.<p>Just like U.S.-based DoorDash, Zomato is mainly a food delivery app, having partnered with 350,000 restaurants and cafes in 526 Indian cities. It also allows customers to book tables for dine-in and write food reviews and upload photos.</p>.<p>Zomato competes with local rival Swiggy, which is backed by Softbank, and Amazon's still nascent food delivery service in a food delivery market that Boston Consulting Group expects will touch $8 billion by 2023, from just $4 billion last year.</p>.<p>The Zomato app has 41.5 million customers using its service on an average every month, and orders on its platform surged to 403.1 million in the year 2019-2020, from just 30.6 million in 2017-2018, its draft IPO prospectus showed.</p>.<p>While the Zomato IPO is seeing strong investor interest, some analysts said the company's valuations were too high, especially because the company does not make profits.</p>.<p>Himanshu Nayyar, an analyst at India's Yes Securities, has said in a research note that Zomato's IPO price range was "really expensive", as "its path to profitability is still not clear."</p>