strategist omniscience capital largecap and flexicap funds were among the biggest takers for the zomato ipo apart from some funds of thematic bent such as technology digital consumption and special situations while zomato seems a good fit in most of these baskets thematic and sector funds are known to be flexible in their betshowever what has left many scratching their heads is zomato shares being lapped up by conservative funds like value dividend yield and hybrid categories some argue that traditional valuation metrics cannot be used for internet or techbased companies as initial cash burn and investments tend to be higher but with no immediate clarity on how to properly value these companies putting them in the value zone is a stretch feel experts zomato finding space in a value fund goes against the basic tenets of this philosophy insists azeez with the company having never made a profit till date and path to profitability remaining unclear it is also perplexing to see its shares being parked in a dividend yield fundsebi allows funds some leeway to deviate so they are not going against the rules but there is no doubt that there is a disconnect with the risk profile argues gupta if the choice of new listing goes against the fund mandate investors should be concerned regardless of how the companys performance pans out asserts kumar it may pave the way for more compromises in the portfolio sending the investment thesis for a toss he adds with more techbased newage businesses lining up public offers fund managers are likely to keep busy paytm ipo is likely to come next watch this space to follow ongoing developments