Zomato IPO: Infosys CEO Salil Parekh Welcomes Internet IPO Rush, Says Boost To All Tech Businesses

Parekh's remarks came days after Tata Consultancy Services (TCS) chief executive Rajesh Gopinathan welcomed India's upcoming Internet IPO rush.

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Infosys chief executive Salil Parekh on Wednesday, welcoming the Zomato IPO, said that internet IPOs like Zomato are incredible and will boost technology business and innovation coming out of India.

Parekh's remarks came days after Tata Consultancy Services (TCS) chief executive Rajesh Gopinathan welcomed India's upcoming Internet IPO rush.

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Against the backdrop of food delivery platform Zomato's IPO, Gopinath, last week after TCS's first-quarter results, said that high-risk capital is good news and a sign of maturity of the Indian capital market.

"It is incredible to see the success of all of these companies, many of them that are based on technology and in the way that they leverage it in the digital ecosystem. I think it is going to give a lot of boost to all tech businesses within the country and also innovation over the years increasingly coming from India," said Parekh, during the announcement of the company's first-quarter results.

Parekh's remark comes on the heels of Zomato's successful IPO, which was oversubscribed on the first day of the bidding process.

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Zomato aims to raise Rs 9,375 crore by its ongoing IPO, which will close on Friday, July 16, making it the first consumer internet company and startups to raise money in a post-pandemic era.

On investing in Zomato's IPO, Divam Sharma, Co-founder of Green Portfolio, said, "Investing in Zomato IPO will depend on the investors' horizons. It's a 2-player industry with high growth technology business; and the potential to diversify the business into other logistics, marketing, and consultancy areas.

The valuations are not on the investors' side today, but investors who have a longer-term horizon can consider the moats of the business and growth potential and invest in the company."

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"IPO investors, if you get an allotment, you can make a quick flip. However, short-term investors can skip as immediate valuations are not supportive of the current financials."

Apart from Zomato, Paytm, Policybazaar, Mobikwik, Nykaa, and Delhivery are also planning to go public in India, even as there is speculation about Flipkart and Freshworks going public in the US.