Zomato IPO gets oversubscribed by 38 times

• Zomato launched the IPO with a price band of ₹72-76.
• Qualified Institutional Buyers bid for 2,013 crore shares.
• It had raised ₹4,197 crore from 186 anchor investors on Tuesday.

Food delivery firm Zomato launched its much-awaited initial public offering (IPO) on Wednesday, and it has been oversubscribed by 38 times. By 5 p.m., on July 16, the issue had attracted bids for 2,751 crore compared to the issue size of 71.9 crore shares.
According to BSE data, the shares allocated for the Qualified Institutional Buyers (QIBs) bid for 2,013 crore shares. This is 51 times higher than 38.8 crore Zomato had reserved for this segment.

The shares allocated for non-institutional investors were subscribed by 32 times and shares meant for employees were subscribed by 62%. Retail Individual Investors (RII) subscribed to 96 crore shares, which was seven times of the issue size of 12.9 crore shares.





Zomato had raised ₹4,197 crore from 186 anchor investors on Tuesday, July 13. Reports suggest that the issue got about 30-35 times more bids from anchor investors than it intended to sell in the first place. The company had allotted 55.22 crore equity shares to these anchor investors for ₹76 per equity shares.

Several marquee investors were allotted more than 2% of the anchor book. This included the Government of Singapore, Morgan Stanley Investment Fund, Tiger Global Investment Fund, Baillie Gifford Pacific Fund, Fidelity Fund, New World Fund, Canada Pension Plan Investment Fund and Kotak Flexi Cap Fund.

The food aggregator business intended to raise ₹9,375 crore with this IPO. About ₹9,000 crore will be a fresh issue and ₹375 crore will be a secondary issue by InfoEdge. The company will open its IPO for retail investors on Wednesday, July 14, at 10 a.m., at a price band of ₹72-76.

SEE ALSO

Amazon acquires Facebook's satellite internet team, bolstering its efforts to compete with SpaceX

SoftBank-Swiggy deal gets CCI approval, two days before Zomato IPO

Payments firm MobiKwik files for ₹1,900 crore IPO, reportedly to seek $1 billion valuation