Zomato raises Rs 4,200 cr pre-IPO from Tiger Global, JP Morgan, Goldman Sachs, other anchor investors

The company informed the stock exchanges on Tuesday that it had allocated 55.21 crore equity shares through the anchor book portion to investors at Rs 76 per equity share price.

Zomato, the online food delivery behemoth, has managed to raise Rs 4,196 crore from a total of 186 anchor investors just ahead of its initial public offering (IPO) which opens today. Marquee investors such as Tiger Global Investment Fund, Blackrock Global Funds, Fidelity Funds, JP Morgan, Morgan Stanley, T. Rowe Price, SBI, Kotak funds, Government of Singapore, Goldman Sachs, ICICI, HDFC, and UTI MF have invested in the company through the anchor investor portion. Zomato plans to raise Rs 9,375 crore in the IPO (including anchor investments), comprising a fresh issue and an offer for sale by existing investors.

The company informed the stock exchanges that it had allocated 55.21 crore equity shares through the anchor book portion to investors at Rs 76 per equity share price. This translates to 44.7% of the entire issue size of the IPO. New World Fund, Tiger Global Investment Fund, Fidelity Funds, Baillie Gifford Pacific Fund, Morgan Stanley, and Canada Pension Plan Investment Board are some of the biggest investors, picking up more than 2% stake each in Zomato.

Zomato has allotted 18.4 crore shares from the anchor portion to domestic funds, making up for 33% of the entire anchor book. SBI Blue Chip Fund, Axis Mutual Fund, Aditya Birla Sun Life, Kotak Flexicap Fund, Mirae Asset Large Cap Fund, and HDFC are some of the biggest domestic investors to have picked up a stake in the company through the anchor book portion.

The food delivery major controls a large market share in the two-player market. Zomato already counts investors such as Jack Ma’s Ant Group and Uber as its investors. The company, although yet to turn profitable, is expected to garner massive interest from investors. Brokerage firms such as Motilal Oswal, Angel Broking, and Ventura Securities have a ‘Subscribe’ rating for the IPO.

Upon successful completion of its IPO, Zomato will become the first tech unicorn from India to be listed on the domestic stock market. The company is looking to raise Rs 9,000 crore through fresh issuance of equity shares while Rs 375 crore is an offer for sale by existing investor, Info Edge. Zomato’s IPO has 75% of the entire issue reserved for Qualified Institutional Buyers (QIB) while 15% of the portion is reserved for Non-Institutional Investors (NII) and the remaining 10% is for retail investors.