Food delivery platform Zomato has raised Rs 4,197 crore from 186 anchor investors on Tuesday ahead of its IPO opening. The company allotted 55.22 crore equity shares to anchor investors for Rs 76 apiece. Tiger Global, BlackRock, New World Fund, Axis Mutual Fund, SBI MF, and HDFC MF received some of the allotment.
The funds raised through anchor investors are almost 45 per cent of the total issues size. Zomato reserved 75 per cent of the issue size for qualified institutional buyers while 25 per cent were reserved for high net worth individuals and retail investors.
Anchor allotment is done a day before the initial public offering and provides an insight on the demand and quality of the issue. Only institutional investors are qualified to subscribe under anchor quota.
Along with Tiger Global and New World Fund, marquee investors such as Morgan Stanley Investment Fund, Canada Pension Plan Investment Fund, Baillie Gifford Pacific Fund, Fidelity Fund, Government of Singapore, Kotak Flexicap Fund and others were allotted more than 2 per cent of the anchor book.
Of the total allocation 18.41 crore shares were given to 19 domestic mutual funds such as SBI, HDFC, Aditya Birla, Kotak, Axis, Nippon India, IIFL, Sundaram, Tata, Principal, and more.
Zomato IPO will open for subscription today and close on Friday. The price band fixed for the IPO is Rs 72-76 per share of face value of Rs 1 each. The IPO comprises Rs 9,000 crore of equity shares and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge.
Zomato is one of the leading Food Services platforms in India in terms of value of food sold. As of March 31, 2021, there were 389,932 active restaurant listings on company’s platform in India, of which 148,384 restaurants were also active food delivery Restaurants during March 2021. The company had 169,802 Active Delivery Partners in March 2021.
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