online food-delivery giant, zomato, saw a huge jump in young and first time investors since the launch of its initial public offering (IPO), on 14 July. Paytm Money said in a release that the IPO which is scheduled to close on July 16 has seen a huge demand from the younger generation. To reflect this huge jump, historically about 55 per cent of IPO applicants on Paytm Money platform are under 30 years of age. As it is now that 60 per cent of the Day-1 Zomato IPO applicants are below 30 years of age. This figure tops the 27 per cent applicants for Zomato’s IPO on day one, who are below 25 years of age. It should also be noted that on the first day of the IPO, 10 per cent of the total applications were made by women. They had a slightly higher ticket size than men. The historic Zomato IPO is making waves as its average exposure on the first day was 20 per cent higher than the average investment in the previous IPO on Paytm Money platform.
Paytm Money, the wealth management division of fintech giant Paytm, announced the launch of a feature that allows users to apply for an IPO a few days before the actual opening date. The feature, dubbed the “Pre-Open IPO Application”, was introduced to increase the participation of retail users in the IPO. Zomato was the first IPO on Paytm Money to use this feature. To further enhance user participation, Paytm Money also came up with several other features such as one-click IPO application, IPO application through shareholder category, and tracking of live IPO membership numbers.
Another trend that took Zomato’s IPO by storm was the participation of smaller cities and towns. While investors from major metros like Mumbai and Delhi readily participated in the IPO, smaller localities also participated. Cities like Kodinar in Gujarat, Tuensang in Nagaland and Rangpara in Assam participated in this historic IPO.
Zomato’s IPO was oversubscribed on the first day. Retail investors were bidding for 2.7 times the number of shares reserved for them. According to stock exchange data, the offer received bids for equity shares worth Rs 75.60 crore as against IPO of Rs 71.92 crore.
At the same time, retail investors were asking for 2.69 times the share reserved for them. This was against Rs 12.95 crore of shares reserved for retail individual investors. According to the release, the bidding of shares worth Rs 34.88 crore in the IPO was seen for 1700 hours. Non-institutional investors bid 13 per cent against their reserve share. Parallelly, shares worth Rs 38.88 crore reserved for Qualified Institutional Buyers (QIBs) were almost fully subscribed. It is to be noted that shares worth Rs 36.84 crore were sought by Foreign Institutional Investors (FIIs).
The employees had also set aside a portion for them. It was subscribed 18%.
To date, this IPO is the biggest in the market this year. It is open till Friday with a price band of Rs 72 to Rs 76 per equity share. While the initial estimated IPO size was Rs 9,375 crore, it has since been reduced to Rs 5,178 crore. A day before the issue, Zomato had on July 13 raised Rs 4,196.51 crore from 186 anchor investors.
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