In his memoir ‘Doglapan’,
“My RMs (relationship managers), based on gray market premiums, expected the Zomato share to trade between ₹85-90, at an issue price of ₹76. However, I was confident that it would fare much better. When the share opened at ₹116 per share on listing day, I have directed them to sell all my shares,” he wrote.
By the time the transaction was executed, “I got a sale price of ₹136 per share. With my landing fees after interest between ₹82-85, I ended up earning more than ₹2.25 crore,” he said. “Within eight minutes of Zomato’s IPO opening, I had earned over ₹2.25 crore.”
Grover said he got a little greedy after Zomato’s IPO.
“I participated in Car Trade IPO but lost ₹25 lakh there,” he said.
Grover, who is currently facing a lawsuit filed by BharatPe whom he co-founded, said he was optimistic about Zomato’s IPO on several counts.
“Of course I knew Deepinder (Goyal), and I am a big believer in his ability to persevere and keep building big. Fundamentally, with the pandemic, the ticket size of their orders had increased, as people were ordering food at home for 3- 4 members in the family, as opposed to single roles in office, increasing Zomato’s absolute margins,” he wrote.
In addition, as restaurants relied entirely on app orders during the lockdowns, there was no risk of the take rate dropping.
“On the other hand, job insecurity among delivery workers kept delivery costs in check. In fact, COVID magically solved the food delivery economics in the country overnight, just as it skyrocketed
Grover was in a heated battle with Kotak Mahindra Bank after their financing deal fell through during the IPO of FSN E-Commerce Ventures Ltd., owner of Nykaa.
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