Zomato IPO quite expensive, bullish on textile: Dron Capital

Mini

Zomato's initial public offering (IPO) is quite expensive, said Pathik Gandotra, Partner at Dron Capital in an interview with CNBC-TV18.

Zomato's initial public offering (IPO) is quite expensive, said Pathik Gandotra, Partner at Dron Capital in an interview with CNBC-TV18.
“The initial pop has been taken by the IPO pricing itself. I would recommend that one needs to see it for 5-6 months as to how it would behave before venturing out to buy it,” he added.
He further said that he has been bullish on the textile sector for quite some time. He believes the moment has come now for the textile sector.
“The government support has just started. I think this is just the beginning because now Indian companies will get into more and more of exporting abroad. There are incentives that the government provides, state provides which will be useful and the PLI scheme will also come. One should focus on apparel makers and made-ups, home textiles. Those are two sectors where there is huge export potential,” he shared.
On real estate, he said that the cycle is turning. “There has been a long sideways movement in prices over the past eight-nine years. Weaker players have been weeded out, a lot of them have gone bankrupt. The sector has got much more organized and a lot of business is happening through cheque now not through cash as it used to be,” he explained.
“Interest rates are falling, cost of ownership has come down, the net affordability has increased and wages are rising, economy is recovering. So all these are signs for that sector to turn up,” he added.
For the full interview, watch the accompanying video.

Market Movers

CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
Wipro599.15 14.95 2.56
SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
SBI429.15 7.15 1.69
HCL Tech994.25 15.65 1.60
Axis Bank755.25 8.75 1.17
CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
Wipro599.15 14.95 2.56
SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
SBI429.15 7.15 1.69
HCL Tech994.25 15.65 1.60
Axis Bank755.25 8.75 1.17

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.4000-0.0600-0.08
Euro-Rupee87.5450-0.0830-0.09
Pound-Rupee102.3880-0.0780-0.08
Rupee-100 Yen0.6730-0.0030-0.44