Zomato IPO: First Indian unicorn makes a stellar market debut

After a stellar debut on the stock market, Zomato’s share price ended the first day of trade at Rs 126, up 66% from final issue price. The share price had soared as high as Rs 138.9 soon after its launch in the morning, clocking an about 83% jump from issue price.

Food delivery unicorn Zomato made a strong debut on stock markets on Friday with listing starting at Rs 115 a share on BSE and Rs 116 per share on NSE, at a 51.32% and 52.63$ premium to the issue price of Rs 76. Company’s overall market capitalisation stood crossed Rs 1 lakh crore mark after the listing.

Share prices jumped 20% upper circuit at Rs 138 quickly after the launch, but since then dropped slightly and now is at Rs 122. 

Zomato’s has witnessed strong demand for its three-day public issue that closed on Friday 05:00 PM.  

The initial public offering (IPO) of 71.92 crore shares, excluding the anchor allotment, received bids for 2751.25 crore shares, stock exchange data showed. The book was covered nearly 38.25 times. 

The retail portion was covered nearly 7.45 times of the 12.95 core shares reserved for them. The portion set aside for non-institutional investors comprising corporate bodies and high net-worth individuals was covered 32.96 times. The IPO saw 51.79 times demand for shares reserved for qualified institutional buyers (QIB). The quota reserved for employees was covered 62%. 

Zomato’s public issue of shares continued to attract significant momentum on the final day of bidding with overall subscription reaching 8.3 times. The IPO has received bids for 6,01,13,73,810 shares against an offer size of 719,233,522 shares, according to stock exchange data. As of now, the retail investor portion has seen 5.9 times subscription, non-institutional investors quota is oversubscribed by 1.4 times, the portion reserved for employees was covered at 41%, and qualified institutional buyers subscription stands at 12.9%. 

Zomato’s public issue of shares was subscribed 4.8 times at the end of the second day of the offering. The IPO received bids for 3,44,76,64,740 shares against the total offer size of 719,233,522 shares, according to stock exchange data. 

The portion meant for qualified institutional buyers (QIBs) saw most traction as the day closed, which stands oversubscribed by 7 times. The retail individual investors (RIIs) portion was oversubscribed 4.7 times. Non-institutional investors (NII) quota was covered 45% and the portion reserved for employees saw 36% subscription. 

The issue closes tomorrow. 

The public issue of Zomato shares has been subscribed 1.6 times so far on the second day of bidding. IPO has received bids for 1,190,114,640 shares against an offer size of 719,233,522 shares, according to stock exchange data. 

Retail investor interest is steadily growing with subscriptions to the tune of 4.3 times. Qualified institutional buyers' portion too has been fully booked; it now stands at 1.4 times. Non-institutional investors' subscription stands at 31% and the quota reserved for employees is 26% booked. 

The public issue was subscribed 1.2 times as bidding continues on the second day. Zomato IPO has received bids for 88,73,58,225 shares against an offer size of 719,233,522 shares, according to stock exchange data.  

As of now, retail investor portion saw 3.6 times subscription, non-institutional investors quota was covered 18%, the portion reserved for employees is at 21%, and qualified institutional buyers subscription remains same as yesterday at 98%.

The public issue of Zomato shares has been subscribed 1.05 times at the close of the first day of bidding. It received bids for 756,003,885 shares against an offer size of 719,233,522 shares, according to stock exchange data. 

The portion for retail investors was subscribed 2.7 times as it received 348,896,340 bids against an offer size of 129,558,333 shares. Quota for qualified institutional buyers was covered 98%, non-institutional investors portion was subscribed 13%, and the portion reserved for employees saw nearly 18% subscription. 

The offering is going strong as the day progresses. The public issue has been subscribed nearly 57% as retail investors continue to flock to the IPO. It has received bids for 40,89,07,005 shares against an offer size of 719,233,522 shares, according to stock exchange data.  

As of now, the retail portion has witnessed 311,320,425 bids which means a subscription of about 2.4 times. Shares reserved for employees and non-institutional investors (NII) have been subscribed 0.09 times while qualified institutional buyers (QIB) subscription stands at 0.2 times. 

The public issue has seen a 29% subscription so far, as it has received bids for 208,110,045 shares against an offer size of 719,233,522 shares, according to stock exchange data. 

Retail investor portion has been subscribed 1.44 times. NII subscription stands at 0.05 times so far while QIBs have not participated in the issue so far. 

This is what CEO of Zomato, Deepinder Goyal had to say before the trade opened:

Just ordered a triple breakfast @zomato. Stress eating

— Deepinder Goyal (@deepigoyal) July 14, 2021

Zomato raised Rs 4,196.52 crore ($562.3 million) from 186 anchor investors by allotting a little over 55.2 crore shares at the upper end of the price band, according to a stock exchange filing.

US-based asset manager Capital Group emerged as the largest anchor that subscribed to 3.91% of the aggregate portion for Rs 164 crore.  Financial investors Tiger Global Management, Bailley Glifford Pacific Fund, and Morgan Stanley Investment Funds invested over Rs 100 crore each.

Over a third of the total anchor investor shares were subscribed to by as many as 19 domestic asset managers including SBI, Axis, Aditya Birla, Kotak, Nippon Life, Mirae, UTI, Motilal Oswal, Franklin India, HDFC, ICICI, IIFL, IDFC, Sundaram, Tata, Edelweiss, HSBC, and Principal.

Mutual funds invested through a total of 74 schemes and fetched Zomato close to Rs 1,400 crore. 

Canada Pension Plan Investment Board (CPPIB) and government of Singapore subscribed to 2.99% and 2.3% of the anchor portion and invested Rs 125.3 crore and Rs 96.61 crore, respectively. Abu Dhabi Investment Authority also participated.  

Morgan Stanley Asia (Singapore) PTE – ODI invested Rs 143.82 crore in the issue. Goldman Sachs, BNP Paribas, Fidelity Investments and Societe Generale also took part in the issue.  

Private equity firms including Steadview Capital, T Rowe Price, and Blackrock also invested.