The initial public offering (IPO) of foodtech company Zomato got subscribed 1.04 times on July 14, its first day of bidding. It has received bids for 75.56 crore equity shares against a total IPO size of 71.92 crore equity shares.
According to data available on the exchanges, retail investors are subscribed 2.67 times, while non-institutional investors have placed bids for 13 per cent of their reserved portion.
The employees' portion is subscribed 17 per cent, while qualified institutional buyers have applied for 98 per cent of their reserved portion on day 1.
ALSO READ: Why you should take note of IPOs like Zomato
Zomato had already raised Rs 4,196.51 crore from 186 anchor investors on July 13, a day before the issue opening. Zomato has allocated 55.21 crore equity shares to anchor investors at a price of Rs 76 per share. The government of Singapore, BlackRock, Goldman Sachs and the Abu Dhabi Investment Authority are some of the investors that participated in the anchor book.
The Rs 9375 crore IPO of Zomato comprises a fresh issue of Rs 9,000 crore by the company and an offer for sale of Rs 375 crore by the existing largest shareholder Info Edge. The price band for the offer has been fixed at Rs 72-76 per equity share.
"Along with global investors, the anchor portion witnessed strong participation from domestic mutual funds who were allotted 18.4 crore shares aggregating to Rs 1,399 crore out of the Rs 4,196 crore anchor book. Strong participation by institutions in the anchor book bodes well for the IPO and we expect continued strong demand for the IPO from both institutional and retail investors alike. Given strong delivery network, high barriers to entry, expected turnaround and significant growth opportunities in tier-II and tier-III cities, we believe that Zomato will command a premium to global peers and hence have a ‘SUBSCRIBE’ recommendation on the IPO, " said Jyoti Roy, deputy vice president and equity strategist, Angel Broking.