Will provide food at 40% discount with only Rs 3,000 cr loss' says, Harsh Goenka

RPG Enterprises Chairman Harsh Goenka took a swipe on the success of food ordering and delivery company Zomato's IPO, saying he is looking to start an app like Zomato or its competitor Swiggy, and will provide food at 40% discount with a loss of "only" Rs 3,000 crore.

He further said on his Twitter handle if you think the loss is less, I will give a 60% discount. I will then list it at Rs 1 lakh cr." It Seems there is a great amount of fun in the loss making business.

Talking about the recent IPO of Zomato, in terms of financials, Zomato is a loss-making company. It incurred a loss of Rs 816.42 crore in fiscal 2021, Rs 2,385.60 crore in fiscal 2020, and Rs 1,010.51 crore in fiscal 2019.

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.

Zomato IPO opened for subscription on July 14 in a price band of ₹72-76 per share. It closed on Friday. However, analysts have raised questions on the valuations of the company as they believe its path to profitability is not clear.