NEW DELHI: The Rs 9,375-crore mega initial public offering (IPO) of foodtech giant Zomato received a blockbuster response from the market. According to data available on the exchanges, the 3-day IPO got subscribed 38.25 times by the end of July 16, its last day of bidding. It attracted bids for 2,751.25 crore shares as compared to the issue size of 71.9 crore shares.
Zomato’s subscription rate is higher than that of SBI Card, the previous big IPO of recent times. SBI Card’s 10,335-crore issue, that came out last year in March, was subscribed 26.22 times. The portion reserved for retail investors got subscribed by 7.45 times while portion reserved for qualified institutional buyers (QIB) was subscribed 51.79 times.
The portion set aside for the non-institutional investors (NII) was subscribed 32.96 times. However, the proportion reserved for employees was not fully subscribed as it received bids for only 40,50,345 shares as against reserved allocation of 60 lakh shares. Zomato’s IPO was subscribed almost five times on the second day and 1.05 times at the end of the first day of the issue.
Now that the IPO is closed, market is eagerly waiting listing gains the IPO will give once it hit the bourses, and how the share would perform in initial weeks. Zomato’s performance in the market is also expected to have a big impact on a host of internet based startups that are going public soon. Most brokerages had given subscribe rating to the IPO while few recommended clients with high risk appetite to go for the same as the company is yet to report profit.