Zomato IPO fully subscribed on the first day of bidding
Online food delivery platform Zomato’s much-awaited initial public offering (IPO) has received a good response from retail investors and has been fully subscribed.
Data available on BSE shows that the issue was subscribed 1.05 times at the end of the first day of the IPO. The issue period continues till July 16.
By the end of the IPO market on Wednesday, shares earmarked for Qualified Institutional Buyers (QIBs) were subscribed 0.98 times, while those of non-institutional investors were subscribed nearly 0.13 times and retail individual investors (RIIs) by 2.69 times.
Employees’ shares were subscribed 0.18 times.
Zomato, the biggest IPO of the year, opened on Wednesday at Rs 72-76 per share.
The company on Tuesday said it has raised Rs 4,196 crore from several leading institutional investors under anchor book allocation. It has allotted 55.2 crore equity shares to anchor investors at a price of Rs 76 per share.
The anchor book had other partners including the Singapore government, BlackRock, Goldman Sachs and the Abu Dhabi Investment Authority.
Analysts noted that the anchor portion saw strong participation from domestic mutual funds, along with global investors.
The issue includes an offer for sale by Info Edge for Rs 375 crore and a fresh issue of Rs 9,000 crore.
The Book Running Lead Managers for the IPO are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Credit Suisse Securities (India) Private Limited, BofA Securities India Limited and Citigroup Global Markets India Private Limited.
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