ipo: Investors dig in, Zomato IPO subscribed over 40X

In 2008, Anil Dhirubhai Ambani Group worth Rs 11,563 crore

the issue has been registered 73 times, with demand at Rs 8.45 lakh crore. Coal India IPO worth Rs 15,199 in 2010 saw demand worth Rs 2.32 lakh crore.

Investors bid on nearly 27.51 billion Zomato shares on BSE and NSE combined with the issuance scale of 681.4 million.

The share of retail investors was registered 7.87 times, while the figure was 54.71 times for qualified institutional buyers (QIBs). The amount reserved for non-institutional investors or high net worth individuals (HNI) has been registered 34.80 times. The employee quota was undersubscribed, with a need for 68% of the shares to be earmarked for them.

The IPO received more than 3.23 million applications, the second highest after Reliance Power’s offer, with 4.78 million applications. Earlier this year, the IPO of Indigo Paint Co., Ltd. Rs 1,176, registered 117 times, received 3.02 million applications.

Success attributed to the brand

Bankers attribute the success of the Zomato IPO, the first of a unicorn start-up in India, to its brand and business, which is understandable. V Jayasankar, head of equity markets, Kotak Investment Bank, lead banker on the matter. “In India, only 8-9% of the index weights are dominated by technology companies compared to 27% in the US, so there is a huge range for digital technology companies in one of the countries. leading emerging markets.”

With the Zomato issue, India has seen Rs 39,303 crore raised through 25 IPOs this year, the second highest so far in Indian capital markets history for any calendar year. In 2017, 36 companies raised Rs 67,147 crore, an annual record.

Zomato shares with a par value of Rs 1 are offered at a price of Rs 72-76. The issue includes a new equity issue of up to Rs 9,000 crore and a sale offer of Rs 375 crore by existing investor Info Edge (India).

At the upper end of the range, the company will command a market capitalization of close to Rs 64,500 crore. This is higher than the combined market value of half a dozen listed quick-service restaurant chains in India such as franchises of Domino’s, McDonald’s and Burger King, etc. India has 20 licensed hotel companies. listed with a total market capitalization of around Rs 45,000 crore.

Zomato raised Rs 4,197 crore from 186 anchor investors on Tuesday before the IPO opened by allocating 552.2 million shares at Rs 76 each. The IPO of SBI Cards & Payment Services in March 2020 saw the participation of 74 fixed investors.