Zomato IPO fully subscribed on first day of biddingwritten by Bella Palmer
The QIBs portion was subscribed 1.12 times while the portion reserved for non institutional investors got subscribed 0.28 times
Zomato's initial public offering (IPO) got fully subscribed on the first day of the bidding on Wednesday a day after raising Rs. 4,195 crore from anchor investors.
The online food-delivery platform received bids for 1.05 times its issue size on Wednesday, with two days still to go.
Zomato's IPO has been subscribed 1.41 times on the second day of the bidding on Thursday. The 10% quota for retail investors is subscribed more than 4 times so far.
The Qualified Institutional Buyers (QIBs) portion was subscribed 1.12 times while the portion reserved for non institutional investors got subscribed 0.28 times. The portion set aside for employees was also subscribed 0.22 times or 22%.
The retail segment of the share sale was fully subscribed within hours of opening on Day 1, and the portion received bid for 2.69 times the number of shares on offer by the end of the day. At the upper end of Rs. 72-76 price band for the issue, the IPO drew retail bids worth roughly Rs. 2,655 crore.
Zomato's grey market premium (GMP) was in the range of Rs. 12-14, nearly 17% over the upper price band of Rs. 76, according to market observers.
Zomato on Tuesday said that it has raised Rs. 4,196 crore from several prominent institutional investors as part of an anchor book allocation. It has allocated 552.17 million equity shares, to anchor investors, at a price of Rs. 76 per share. Government of Singapore, BlackRock, Goldman Sachs, Abu Dhabi Investment Authority are some of the investors that participated in the anchor book.
The issue comprises an offer for sale of Rs. 375 crore by the company’s early investor—Info Edge—and a fresh issue worth Rs. 9,000 crore. Link Intime India Private is the registrar of Zomato IPO and according to brokerages share allotment is likely to be finalised on July 22 and Zomato shares are likely to be listed on July 27.
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