Zomato's Rs 9,375-Crore IPO Fully Subscribed On Day 1
Get latest subscription updates from day 1 of Zomato IPO.
Zomato Ltd.’s initial public offering was fully subscribed on the first day of sale, driven by demand from institutional and retail investors.
The company is eyeing a market value of Rs 59,623 crore (about $8 billion) through its Rs 9,375-crore initial public offer. Zomato, the first Indian online food ordering and delivery platform to go public, is selling shares at Rs 72-76 apiece in the IPO—a combination of fresh issue and offer-for-sale.
The issue will close on July 16.
The initial share sale was subscribed 1.11 times as of 5 p.m. on July 14.
Institutional subscription: 1.03 times.
Non-institutional investor subscription: 0.14 times.
Retail subscription: 2.85 times.
Employees: 0.18 times.
Prior to the IPO, Zomato raised Rs 4,196.5 crore from 186 anchor investors, including 74 schemes of 19 domestic mutual funds.
A large part of the proceeds of Rs 6,745 crore will be used to fund the company’s organic and inorganic growth initiatives. It’s also entering the high investment and competitive grocery segment. While it wants to do a pilot on its own, it’s acquiring a 9% stake in Grofers.