Zomato’s Initial Public Offering (IPO) – India’s biggest this year – has been available for subscription since July 14, 2021.
The price band of Zomato IPO has been fixed at Rs 72-76 per share of the face value of Rs 1 each. The company expects to raise Rs 9,375 crore through the offer. The subscription for Zomato IPO is going to be available till 5 pm, July 16, 2021.
According to the information provided within the red herring prospectus, the IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com.
Ahead of the IPO, the anchor portion of the offer was open on Tuesday, July 13, 2021. Zomato raised over Rs 4,196 crore (Rs 41,96,51,86,380) from 186 anchor investors in lieu of 55,21,73,505 equity shares at Rs 76 each, data from the stock exchanges showed.
Some anchor investors include the likes of Tiger Global Investment Fund, Blackrock, Fidelity, JPMorgan, Morgan Stanley, Government of Singapore, SBI Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Motilal Oswal AMC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Goldman Sachs India, Abu Dhabi Investment Authority, HSBC Asset Management (India) among many others.
The Zomato IPO will have 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 10 per cent of the issue will be available for retail investors.
The proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives and for general corporate purposes, suggests the information in the red herring prospectus.
Investors who wish to subscribe to the Zomato IPO can bid in a lot of 195 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,820 to get a single lot of Zomato. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, July 19, 2021, upto 12:00 pm. Shall they fail, their application will not be taken into consideration.
Zomato becomes the first consumer-centric internet start-up to raise public money in a post-pandemic India. The very segment of food delivery has seen pronounced growth over the last few years, with Zomato and Swiggy leading the competition.
The initial public offering of Zomato, one of the leading food-service platforms in India, subscribed 4.79 times on July 15, the second day of bidding. The offer has received bids for 344.76 crore equity shares against an IPO size of 71.92 crore equity shares, the subscription data available on the exchanges showed.