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Zomato IPO fully subscribed on Day 1, retail portion booked over two times

The portion allocated for retail investors was subscribed 2.69 times, while non-institutional investors put in bids for 13 per cent against their reserved portion

 The portion allocated for retail investors was subscribed 2.69 times, while non-institutional investors put in bids for 13 percent against their reserved portion. The portion allocated for retail investors was subscribed 2.69 times, while non-institutional investors put in bids for 13 percent against their reserved portion.

The initial public offer (IPO) of Zomato was fully subscribed on day 1 amid strong interest by retail investors. The issue received bids for 75.64 crore shares against 71.92 crore shares on offer by the popular food delivery company.

The portion allocated for retail investors was subscribed 2.69 times, while non-institutional investors put in bids for 13 percent against their reserved portion.

The portion reserved for employees was subscribed 18 percent and that of qualified institutional buyers 98 percent.

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

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

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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.

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.

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