Zomato makes a strong public market debut at 51% premium

• Zomato’s shares get listed at ₹116 on the NSE, translating into a 51% premium.
• The company launched its initial public offering last week, at a price band of ₹72-76.
• Zomato’s issue was oversubscribed by 38 times.

Zomato made a strong debut on the stock exchanges on Friday, July 23, as its shares opened at ₹116 on the national stock exchange (NSE). This represented a premium of 51.32% over the issue price of ₹76.

At 10.18 a.m, Zomato shares were trading at ₹132.00 on the NSE, up 72%. Zomato ended the first day of trade about 8% above the listing price, at ₹125.30.

The company’s market cap stood at ₹1.06 lakh crore at 10.16 a.m.

Zomato was supposed to make its stock exchange debut on July 27, but the company preponed its listing date by four days to Friday. The company launched its initial public offering (IPO) last week between July 14 to 16 at a price band of ₹72-76.

The minimum order bid was kept at one lot of 195 equity shares. At a price of ₹76 per share, one lot cost up to ₹14,820.

Zomato’s issue was oversubscribed by 38 times, as it attracted bids for 2,751 crore compared to the issue size of 71.9 crore shares. The shares reserved for Qualified Institutional Buyers (QIBs) were oversubscribed by 51 times. Meanwhile, Non-institutional investors' reserve was oversubscribed by 32 times and Retail Individual Investors (RII) share was oversubscribed by seven times.

“The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business,” Zomato’s CEO Deepinder Goyal, wrote in a blog post earlier today.

A day before its public listing, on July 13, Zomato raised ₹4,197 crore from 186 anchor investors. The company had allotted 55.22 crore equity shares to these anchor investors for ₹76 per equity shares to some marquee investors like Government of Singapore, Morgan Stanley Investment Fund, Tiger Global Investment Fund, Baillie Gifford Pacific Fund and more.