Day Trading Stocks & Futures

[travi]

Zomato IPO
Inspite of all warnings about very high valuations for a consistent loss making SW interface, retailers have already applied 200% of their quota.
PROs :
- Potential growth among Indian consumers (increasing mobile usage, under penetrated food delivery in various cities across)
- Deep pockets ready to burn much more cash to acquire, retain customers
- Negligible debt
- Very high interest among FIIs.

CONs:
- Consistent loss maker since Day1
- High cost to acquire/retain customers
- Seeking valuation(MCAP ~60000 Crores ) as high as sum of all listed restaurants, food chains in India.
- Easy replicable business model for a new entrant
- MOAT is only the loyal customers who can be lured for heavy discounts, better service by competitors.

Still scratching my head what did I not see in this offer which other retailers have seen and applied.

2.5X RII imho is very low 1st day response so ppl definitely think its over-priced
my pizza stock doing very well
in the hottest listings, we've seen even 100X and more after bid closing.

 

[Dr. Jan Itor]

my pizza stock doing very well

EKDUM !!!!

 

[Dr. Jan Itor]

Still scratching my head what did I not see in this offer which other retailers have seen and applied.

GMP

 

[man.i]

2.5X RII imho is very low 1st day response so ppl definitely think its over-priced
my pizza stock doing very well
in the hottest listings, we've seen even 100X and more after bid closing.

Consider case of burger king, issue size was 800 Cr (retail quota10% - 80 cr), got subscribed 70X = 5600Cr worth of interest by retailers
Zomato issue size is massive 9300 Cr(retail quota 10% - 930 Cr) , even a 10X final subscription would mean the craziness among retailers which I am talking about.

Anyways in the recent IPOs the retailers have been very cautious and participation is less than 15X (Dodla-13X, Barbeque - 13X, KIMS- 3X, Lodha -0.5X)

 

[Dr. Jan Itor]

Hamara Bajaj licking his lips while Heros are fighting...

 

[shivroy]

Jagran inverse H&S with good volume

 

[tradermodified]

NF
staying above 15800, likely to move for 15900/50

ltp 15780

15957
high so far

 

[tradermodified]

BNF
staying above 35400, likely to move for 35800

ltp 35490

high so far
36067

 

[tradermodified]

N50

new ATH

 

[Dr. Jan Itor]

Happiest minds... 9x from IPO price... 4x from listing price...