MONEY

Zomato’s IPO ends on a sizzling note, online food delivery platform’s issue subscribed by 38.25 times

The blockbuster initial public offer (IPO) of online restaurant discovery and food delivery platform Zomato, which was launched earlier this week, was met with a robust demand by investors. 


The Zomato IPO was subscribed by 38.25 times on the final day, data available on the BSE showed on Friday. The Rs 9,375-crore offer received bids for over 2,751.25 crore shares against the total issue size of 71.92 crore shares, the data showed. 


The shares which are to be allocated for qualified institutional buyers (QIBs) got subscribed by 51.79 times, while those of non-institutional investors were subscribed by 32.96 times and those of retail individual investors (RIIs) were subscribed by 7.45 times. Separately, shares for the employees’ segment were subscribed by 0.62 times, the BSE data showed. 


The Zomato IPO was India’s biggest so far this year with a size of Rs 9,375 crore. The IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an Offer For Sale (OFS) worth Rs 375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com, according to the information in the online food delivery platform’ Red Herring Prospectus (RHP). 


The IPO of Zomato had opened for subscription on Wednesday, July 14, 2021, and concluded at 5 pm on Friday. It had a price band of Rs 72-76 per share, and before heading into the IPO, Zomato had raised over Rs 4,196 crore from 186 anchor investors in lieu of 55,21,73,505 equity shares at Rs 76 each. 


Going ahead, investors will now look forward to the share allotment date of the issue. The finalisation of the basis of allotment for Zomato is expected to take place on Thursday, July 22, 2021, according to the information provided in the RHP. 

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