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Zomato IPO: GMP, subscription status, other details here

Zomato IPO subscription got bids for 1.05 times its issue size on Wednesday (REUTERS) — Zomato IPO subscription got bids for 1.05 times its issue size on Wednesday **(REUTERS)**

1 min read . Updated: 15 Jul 2021, 10:57 AM IST Livemint

Zomato's IPO got fully subscribed on the first day of bidding, led by a good response from the retail investors

A day after raising ₹4,195 crore from anchor investors, Zomato's initial public offering (IPO) got fully subscribed on the first day of the bidding on Wednesday, led by a good response from the retail investors. The online food-delivery platform received bids for 1.05 times its issue size on Wednesday, with two days still to go.

Within hours of opening on Day 1, the retail segment of the share sale was fully subscribed, and by the end of the day, the portion received bid for 2.69 times the number of shares on offer. At the upper end of ₹72-76 price band for the issue, the IPO drew retail bids worth roughly ₹2,655 crore.

Overall, the issue got subscribed nearly 1.05 times on Day 1, data compiled by stock exchanges showed. The offer received bids for 75.60 crore equity shares against IPO size of 71.92 crore equity shares. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.98 times (98%) while the portion reserved for non institutional investors got subscribed 0.13 times (13%). The portion set aside for employees was subscribed 0.8 times or 18%.

As per market observers, Zomato's grey market premium (GMP) was in the range of ₹12-14, nearly 17% over the upper price band of ₹76.

Zomato on Tuesday said that it has raised ₹4,196 crore from several prominent institutional investors as part of an anchor book allocation. It has allocated 552.17 million equity shares, to anchor investors, at a price of ₹76 per share. Government of Singapore, BlackRock, Goldman Sachs, Abu Dhabi Investment Authority are some of the investors that participated in the anchor book.

The issue comprises an offer for sale of ₹375 crore by the company’s early investor—Info Edge—and a fresh issue worth ₹9,000 crore. Link Intime India Private is the registrar of Zomato IPO and according to brokerages share allotment is likely to be finalised on July 22 and Zomato shares are likely to be listed on July 27.

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