Food delivery company Zomato will be appointing merchant banks and law firms as it gears up to become the first modern consumer internet IPO to list on the Indian stock market.
If Zomato succeeds in its plan, it will become India’s first IPO since Info Edge that made its market debut in 2006. Furthermore, MakeMyTrip, an online travel company is listed overseas on the Nasdaq in 2010.
Following the footsteps of Zomato, other Indian internet giants like Flipkart, Paytm, and BigBasket too are considering listing on the stock market in the coming years. Zomato is backed by Info Edge, Temasek, Ant Financial, and Tiger Global.
In May 2020, to boost the startup community, the government cleared the deck for a direct overseas listing of Indian firms in permissible jurisdiction.
Overseas listing has been advantageous in terms of diverse pools of investors and better benchmarking of business models.
