Zomato’s initial public offering (IPO), which opened July 14-16, was subscribed over 40 times on the last day of subscription, led by the strong response from QIBs and the retail category. On the third and final day of the submission of the offer, the Zomato IPO received offers for 29.04 billion shares with an IPO volume of 719.23 million.
The Qualified Institutional Buyer (QIB) category was drawn 55 times, the Retail category around 8 times. Non-institutional investors subscribed 34.80 times and 62% for employees.
According to market observers, Zomato’s gray market premium (GMP) has improved as it is in the range of ₹16-18. The gray market is an unofficial platform on which trading begins after the IPO price range has been announced until the IPO shares are listed.
The issue included an offer to sell ₹375 crore from the company’s early investor – Info Edge – and worth a new issue ₹9,000 million euros. Link Intime India Private is the registrar of Zomato’s initial public offering, and according to the brokers, the stock allotment is expected to close on Thursday July 22nd and Zomato shares are expected to be listed on both the National Stock Exchange next week on July 27th (NSE) and on the Bombay Stock Exchange (BSE).
Zomato has raised ₹4,196 crore from several well-known institutional investors as part of an anchor book allocation. It has anchor investors 552.17 million shares at a price of. allocated ₹76 per share. Singapore Government, BlackRock, Goldman Sachs, Abu Dhabi Investment Authority are some of the investors who participated in the anchor book.
Zomato’s IPO success could fuel the upcoming IPOs of new age unicorns like Paytm, Mobikwik and PolicyBazaar. While Paytm and Mobikwik recently submitted their designs to SEBI, Nykaa, PolicyBazaar and others are expected to do so soon.
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