The valuation email that defined Zomato's IPO: Why Sanjeev Bikhchandani's advice to Deepinder Goyal still echoes
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Days before Zomato's landmark July 2021 listing, Sanjeev Bikhchandani sent an email that now reads like a masterclass on IPO pricing discipline. The Info Edge founder, one of Zomato’s earliest backers, told founder Deepinder Goyal to neither chase a high listing pop nor let retail investors lose money. “Current shareholders should not feel shortchanged at the end of it, if you end up with a pop of 100 per cent, you would have left too much on the table,” he wrote, before adding that institutional investors too needed to “feel good in the aftermarket with the stock never going below the issue price.” The email, revealed in Megha Vishwanath's new book "Unseen: The Untold Story of Deepinder Goyal and the Making of Zomato," exposes not just the mechanics of IPO pricing, but the philosophical tension at the heart of taking a high-growth company public: how to balance founder ambition, institutional appetite, retail sentiment,...