Zomato’s mega preliminary public providing (IPO) ended with a bumper 38 times oversubscription on Friday as institutional traders poured cash to get a pie of the most popular on-line meals supply platform. Zomato received bids for two,751.25 crore shares towards 71.92 crore shares on provide, inventory trade information confirmed. The IPO is India’s largest since March 2020.
Institutional traders, who shied away within the first two days of the IPO, bid a number of times over the variety of shares reserved for them.
While certified institutional patrons or QIBs bid nearly 52 times the quota reserved for them, non-institutional traders sought 640 crore shares towards their quota of 19.43 crore. Retail traders bid 7.45 times towards the 12.96 crore shares reserved for them.
The solely class that wasn’t totally subscribed by the shares reserved for firm staff, who sought simply 62 per cent of the 65 lakh shares reserved for them.
The IPO opened for subscription on July 14 in a worth band of Rs 72-76 per share. It closed on Friday.
Zomato has already mobilised Rs 4,196.51 crore from 186 anchor traders on July 13, a day earlier than the problem opened. The IPO dimension has been decreased to Rs 5,178.49 crore from Rs 9,375 crore earlier.
The firm, backed by Jack Ma’s Ant Group Co, is the primary from a protracted record of Indian unicorn startups to launch an IPO. It can be the primary amongst Indian on-line meals aggregators.
The IPO, which can give Zomato a valuation of Rs 64,365 crore, is being touted because the second-biggest since SBI Cards and Payment Services’ Rs 10,341 crore situation in March 2020. It will surpass Indian Railway Finance Corp providing in January.
Post-IPO, the valuation of Zomato will likely be greater than the mixed market capitalisation of 5 listed quick meals and restaurant corporations – Jubilant FoodWorks (the grasp franchisee for Domino’s Pizza in India), Burger King India, quick meals restaurant holding firm Westlife Development Ltd, Barbeque-Nation (*38*) and Speciality Restaurants.
At Friday’s closing worth, the mixed market capitalisation of the 5 corporations was Rs 59,841.3 crore.
The Zomato IPO contains a recent situation of fairness shares price Rs 9,000 crore and an offer-for-sale (OFS) price Rs 375 crore by current investor Info Edge (India), which is the father or mother firm of Naukri.com, in accordance with the knowledge offered within the draft purple herring prospectus.
Zomato has mentioned it’s going to utilise the web proceeds from the recent situation for funding natural and inorganic development initiatives (Rs 6,750 crore) and basic company functions.
Incorporated in 2008, Zomato is current in 525 cities in India, with 3,89,932 lively restaurant listings together with a presence in 23 nations outdoors India.