Stay away from secondary IPOs, there's conflict of interest: Zomato's Goyal

The Zomato CEO also talked about an e-mail from Info Edge founder Sanjeev Bikhchandani on how the company should price its IPO

Zomato founder and Chief Executive Officer (CEO) Deepinder Goyal said on Friday that investors should be wary of companies that have a large secondary component in their initial public offerings (IPOs).

“Around 95-98 per cent of our IPO was primary fundraise. In secondary IPOs, there is a pressure to price it higher than they should be so that people can make money. I advise people to stay away from secondary IPOs. There is a big conflict of interest between the exiting and incoming investors,” Goyal said at a webinar organised by CII.

Despite a large IPO size of Rs 9,375 crore ($1.3