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Zomato IPO subscribed 38.25 times on last day, retail portion booked eight times

The issue received bids for 2,751.25 equity shares against IPO size of 71.92 crore equity shares, subscription data on the bourses showed

The IPO of the popular food delivery company was fully subscribed on first day (July 14) itself when it received bids for 75.64 crore shares against 71.92 crore shares on offer The IPO of the popular food delivery company was fully subscribed on first day (July 14) itself when it received bids for 75.64 crore shares against 71.92 crore shares on offer

The initial public offering (IPO) of Zomato was subscribed 38.25 times today, the third and last day of bidding.

The issue received bids for 2,751.25 equity shares against IPO size of 71.92 crore equity shares, subscription data on the bourses showed.

Portion meant for retail investors was subscribed 7.45 times, while non-institutional investors submitted bids for 32.96 times against their reserved portion.

The portion allocated for employees was subscribed 62 percent and that of qualified institutional buyers (QIBs) subscribed 51.79 times.

The IPO of the popular food delivery company was fully subscribed on first day (July 14) itself when it received bids for 75.64 crore shares against 71.92 crore shares on offer.

Shares in the IPO, which is the biggest in India this year, have been offered in a price band of Rs 72-76 per share.

Zomato raised Rs 4,196.51 crore from 186 anchor investors on July 13.

The company allocated 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 were 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.

Allotment of shares will be done on July 22 and the stock is likely to be listed on BSE and NSE on July 27.

The Zomato IPO is one of the largest public offerings in recent times as the company is planning to raise Rs 9,750 crore.

The lot size of Zomato IPO was 195 shares for which an investor would have to spend Rs 14,820. A retail individual investor could apply for up to 13 lots (2,535 shares) by spending Rs 192,660.

The company, backed by Jack Ma's Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.

The IPO, which will give Zomato a valuation of Rs 64,365 crore, is being referred as the second-biggest since SBI Cards and Payment Services' Rs 10,341-crore issue in March 2020.

Post-IPO, the valuation of Zomato will be more than the combined market capitalisation of five listed fast food and restaurant companies - Jubilant FoodWorks Ltd (the master franchise for Domino's Pizza in India, Burger King India), fast food restaurant holding company Westlife Development Ltd, Barbeque-Nation Hospitality and Speciality Restaurants.