Zomato Going public was subscribed 4.8 times on the 2nd dayLeading online food delivery provider Zomato's Rs 9,375 crore share sale via going public (IPO) was subscribed 4.8- nearly 5 times on the 2nd day of the issue, according to subscription data on the exchanges.
The much-awaited IPO opened on Wednesday, July 14, and will close tomorrow - July 16, staying open for financiers in a membership window of three days.
Zomato shares today were in high demand amongst the qualified institutional financiers, while retail financiers revealed huge interest yesterday.The part scheduled for retail investors in the IPO was subscribed 4.73 times on Thursday by 5:00 pm.
The portion reserve for the non-institutional financiers (NII) was subscribed 0.45 times, while the portion reserved for qualified institutional purchasers (QIB) was subscribed 7.07 times - the highest today amongst the three groups of financiers.
On the first day of the issue, the IPO was totally subscribed at 1.05 times, and the portion reserved for retail financiers oversubscribed within hours of opening yesterday.The company has fixed the rate band of the main market offering at 72-76 per share.
The IPO consists of a fresh problem of 9,000 crore and an offer for sale (OFS) of 375 crore by the promoter - Information Edge India.
Domestic brokerage firm Anand Rathi preserved a 's ubscribe' (short-term) to the Zomato IPO.
Zomato is the biggest online food shipment players in India, with dominant market share in shipment and restaurant classified.
At the upper end of the IPO rate band, the deal is valued at 29.9 x of its FY21 marketcap to sales.
Moving forward, market delivery portion to net-revenue stands at ~ 5 percent and with the Zomato average order value of Rs.
400 (i.e.
Rs.
20 per delivery) the company is well poised and it is also placed at a sweet area as the first mover advantage in the online food delivery market.Additionally, given the strong network effects, increasing frequency of order, substantial scope for growth in tier-II and tier-III cities and big addressable market, we recommend a subscribe (short-term) score to the IPO, stated Anand Rathi in its report.