How did the Zomato IPO perform on Day 3?

By Angel Broking | Published on 19th July 2021 | 28

How did the Zomato IPO perform on Day 3?

As of 5 pm on July 16 2021, the initial public offering of India’s first online food aggregator, Zomato, was subscribed 38.25 times, getting bids for 20,13,78,57,28 shares.

The issue was set to nudge the company’s valuation up to Rs. 64,365 crores, making it the second-biggest IPO since March 2020.

Zomato had set a target of raising Rs. 9000 crores via fresh issuance of equity shares. The IPO also included an offer for sale worth Rs. 375 crores by existing shareholders, Info Edge which is the holding company of Naukri.com.

So, how did the IPO perform on the third bidding day? Let’s look into the details.  

Zomato IPO Subscription Status Day 3

Here’s how Zomato IPO performed across different investor categories on the third and final bidding day:

  • Retail investors put in bids for 96,49,87,140 shares against 12,95,58,333 shares allotted for them. As a result, this category was subscribed 7.45 times.
  • Qualified Institutional Buyers (QIBs) placed bids for 20,13,78,57,285 shares out of the 38.8 crore shares that were reserved for them.
  • The employee category was subscribed 0.62 times, as bids were put in for 40,50,345 shares. In total, 65,00,000 shares were reserved for this category.
  • Non-institutional Investors subscribed 32.96 times the portion reserved for them.

The table below summarises Zomato IPO’s performance on the third bidding day:

Investor Category IPO  Subscription
Non-Institutional Investors 32.96 times
Employee 0.62 times
Qualified Institutional Buyers 51.79 times
Retail Individual Investors Employee 7.45 times
Total 38.25 times

The company had already obtained funds worth Rs. 4,196.51 crores from 186 anchor investors a day before Zomato IPO opened for subscription. Thus, the size of the issue was reduced to Rs. 5,178.49 crores.

The list of anchor investors included Fidelity Fund, New World Fund, the Government of Singapore, and Morgan Stanley Investment Fund.

Highlights of Zomato IPO from Day 1 and Day 2

Here’s a brief showing how many times the portions allotted for different categories were subscribed on day 1 and day 2.

Bidding Day Employee QIB Retail Investors Total
Day 1 0.18 times 0.98 times 2.69 times 2.7 times
Day 2 0.36 times 7 times 4.73 times 4.8 times

Summing up

Zomato has successfully surpassed its Rs. 64.365 crore-target, with the issue being subscribed 38.25 times. Investors who missed out on the opportunity to subscribe to the much-awaited IPO can buy shares of the company once they get listed on NSE and BSE. That said, they must conduct a thorough analysis of the company’s financials and business model before parting with their funds.

 

Frequently Asked Questions

  1. What is the Zomato IPO listing date?

It is still not known when shares of Zomato will get listed on NSE and BSE. That said, the tentative listing date is July 27 2021.

  1. From where can one get more information regarding Zomato?

Interested investors can get to know more about the company from its red herring prospectus (RHP).

  1. Who is Zomato’s largest shareholder?

Info Edge (India) is Zomato’s largest shareholder.