Harsh Goenka takes jibe at Zomato IPO's success, says 'Will provide food at 40% discount with a loss of only Rs 3,000 crore'

RPG Group Chairman Harsh Goenka (Image: LinkedIn)

With Zomato's initial public offering (IPO) oversubscribed on day 3, RPG Enterprises Chairman Harsh Goenka on July 17 took a swipe at the food delivering app, saying he is planning to start a similar app.

"My newest corporate venture: I am starting a Swiggy/Zomato like app. I will provide food at 40% discount with a loss of only Rs 3000 cr. If you think the loss is less, I will give 60% discount. I will then list it at Rs 1 lakh cr. Looking for suckers to invest!," Goenka wrote on Twitter.

My newest corporate venture:
I am starting a Swiggy/Zomato like app. I will provide food at 40% discount with a loss of only Rs 3000 cr. If you think the loss is less, I will give 60% discount. I will then list it at Rs 1 lakh cr.
Looking for suckers to invest!

Story continues below Advertisement

Remove Ad

— Harsh Goenka (@hvgoenka) July 17, 2021

Earlier on July 16, Zomato's IPO was subscribed 38.25 times on the final day of the bidding. The offer received bids for 2,751.25 equity shares against IPO size of 71.92 crore equity shares, the subscription data available on the exchanges showed.

ALSO READ: Why did some fund managers skip the Zomato IPO?

The retail investor portion was subscribed 7.45 times, while non-institutional investors put in bids for 32.96 times against their reserved portion. The portion set aside for employees was subscribed 62 percent and that of qualified institutional buyers (QIBs) subscribed 51.79 times.

While several fund managers say they didn’t want to invest in a loss-making company, and added that Zomato right now gives little comfort on when it can turn profitable. They are also not fully convinced with the business model.