Zomato

Historical Zomato IPO oversubscribed on Day 2

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Key Highlights:

• Zomato IPO was oversubscribed on the second day of the IPO.

• Statistics reveal that the offer attracted bids for 75.60 crore equity shares against an IPO size of 71.92 crores.

• It is expected to outperform Indian Railway Finance Corp’s IPO in January.

Influx of Applications

On the first day of its IPO, Zomato, the online food-delivery behemoth, received a tremendous influx of applications. It was oversubscribed on Day 2 of the IPO. Nearly 20% of the IPO were subscribed to. On the second day of bidding, the Zomato IPO has been subscribed to 1.07 times. According to market statistics, the offer attracted bids for 77.27 crore equity shares, compared to an IPO size of 71.92 crore equity shares. Within the first few hours of its launch, the retail part of the IPO was virtually fully subscribed. Retail investors bid 2.7 times the number of shares assigned to them.

According to stock market statistics, the offer attracted bids for 75.60 crore equity shares against an IPO size of 71.92 crores. This comes a day after the firm collected Rs 4,195 crore on July 13 from 186 anchor investors. Another noteworthy feature of this historical IPO is that, while being one of the largest IPOs to date this year, the IPO size has been decreased.

The IPO size has been cut from Rs 9,375 crore to Rs 5,178.49 crore.

Subscribed within hours

The retail component of the share offering was fully subscribed within hours of the public issue’s launch on July 14. This was at the top end of the price range set for the public issuance, which was Rs 72 to Rs 76.

According to the report, the IPO received retail bids of around Rs 2,655 crore. By 1700 hours, a total of 34.88 crore shares had been bought. This was in addition to the 12.95 crore shares already designated for retail individual investors. Furthermore, non-institutional investors bid for 13% of the reserved shares, while the 38.88 crore shares allocated for Qualified Institutional Buyers (QIBs) were virtually fully subscribed. Foreign Institutional Investors wanted a total of 36.84 crore shares (FIIs). On the first day of the issue’s availability, the issue was subscribed to about 1.05 times.

Largest IPO of 2021

Zomato’s IPO is being billed as one of the largest IPOs to take place this year. Zomato would be valued at Rs 64,365 crore as a result of the IPO. It is only second to SBI Cards and Payment Services’ Rs 10,341 crore offering in March 2020. It is expected to outperform Indian Railway Finance Corp’s IPO in January.

Also Read: Zomato buys Uber Eats’ business in India

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