Zomato raised $562 million from 186 anchor investors ahead of its IPO

By Angel Broking | Published on 16th July 2021 | 47

Zomato raised $562 million from 186 anchor investors ahead of its IPO

Zomato IPO has opened on 14 July 2021. The online restaurant aggregator had announced its plans to raise more than $560 million from anchor investors before its IPO.

India’s top online food delivery platform, on Tuesday, informed that it has raised $562.3 million from 186 anchor investors. The amount raised comprises about 45% of its total issue size of $1.3 billion. Zomato had previously informed stock exchanges that it had allocated 55.22 crore equity shares to its anchor investors at Rs. 76 per share.

A close look at the allocation of shares

Zomato IPO has piqued the interest of many retail investors and speculations about the allocation of shares was also widespread in the days leading up to its IPO.

Following is a quick look at the numbers.

Nearly 75% of the issue size has been reserved for institutional buyers. However, 25% of the shares are meant for retail investors and other high net-worth individuals.

Here is a list of Marquee investors who were allocated around 2% of the anchor text:

  1. Tiger Global Investment Fund
  2. New World Fund
  3. Fidelity Fund
  4. Morgan Stanley Investment Fund
  5. Kotak Flexicap Fund
  6. Government of Singapore
  7. Baillie Gifford Pacific Fund and more

In addition, 18.41 crores of the total 55.22 crore shares were allocated to 19 domestic mutual funds, including:

  1. SBI Mutual Fund
  2. Aditya Birla
  3. Motilal Oswal
  4. UTI
  5. HDFC
  6. Sundaram
  7. Tata
  8. Kotak Mirea, etc

Investors have subscribed Zomato shares at Rs. 76 ($1), which is the upper cap of each unit’s price. This has given the company an implied valuation of around $8.6 billion, higher than $5.4 billion in February 2021.

Brief overview of Zomato IPO

Zomato IPO has been in the news for some time now. The Indian unicorn opened its IPO on 14 July 2021, Wednesday and will close on 16 July 2021, Friday. Zomato IPO price band is fixed at Rs. 72- Rs. 76 each share with a face value of Re. 1 each.

The massive Rs. 9375 crores IPO will consist of a fresh issue of equity shares of Rs. 9,000. In addition, there would be an offer for sale (OFS) of Rs. 375 crores by Info Edge India, which is one of Zomato’s existing investors.

Final words

Those interested to subscribe for Zomato IPO can avail ASBA facility on the savings or current account. However, you can also fill out the relevant NSE and BSE forms and start trading.

To get more of such useful updates about the financial and stock market world, make sure to check out the Angel Broking blogs.

 

Frequently Asked Questions

  1. Where is Zomato IPO listed?

Zomato IPO is listed on both the NSE and BSE.

  1. What is the market lot size of Zomato IPO?

195 shares

  1. Can I apply for Zomato IPO with UPI?

Yes, you can apply for the Zomato IPO with UPI. However, you need to have a valid UPI ID connected with your bank account.