Zomato IPO subscribed 5.07x on day 2
MUMBAI: The initial public offer (IPO) of Zomato Ltd was subscribed 5.07 times on day two, receiving bids for 3.65 billion shares for the 719.23 million shares available.
The portion reserved for retail investors was subscribed 4.99 times. While the qualified institutional buyer category was subscribed 7.46 times, the employees’ category was subscribed 36% and the non-institutional investor category was subscribed 48%.
Earlier on Tuesday, a day ahead of the opening of the IPO, the company had seen strong demand for its shares in the anchor book allocation.
The online food delivery platform raised ₹4,196 crore from several prominent institutional investors, including the Government
of Singapore, Canadian pension funds Canada Pension Plan Investment Board and OMERS, Blackrock Global Funds, T Rowe Price, Fidelity, Aberdeen Global Indian Equity, Baillie Gifford, Steadview Capital, Goldman Sachs, Neuberger Berman, Abu Dhabi Investment Authority and Pinebridge Global Funds.
Among domestic investors,
Axis MF, HDFC Trustee, SBI MF, Aditya Birla Sun Life, ICICI Prudential, Kotak MF, Nippon Life India and SBI Life Insurance invested in the company via the anchor book. The Zomato IPO had been fully subscribed on the first day of the offering, led by retail investors.
Within minutes of opening, the retail segment was fully subscribed, and by the end of the day, small investors had bid for 2.85 times the number of shares on offer.
Zomato is India’s first major new-age technology company to go public. The keen retail interest seen in the IPO on the first day is likely to bode well for other technology companies preparing their IPOS, including Paytm, Mobikwik, Nykaa and Policybazaar. The IPO comprises a sale of new shares worth ₹9,000 crore and existing Info Edge shares worth ₹375 crore in a ₹72-76 price band.