INSUBCONTINENT EXCLUSIVE:
Zomato is selling shares in the price band of Rs 72-76 per share.Food delivery service provider Zomato's Rs 9,375 crore share sale via
initial public offering (IPO) was subscribed 36 per cent by 1:15 pm on the first day of the issue, data from the National Stock Exchange
Zomato shares were in high demand among the retail individual investors as the portion reserved for them was oversubscribed within hours of
The portion reserved for retail investors was subscribed 1.24 times
However, Zomato shares witnessed tepid demand from qualified institutional buyers and non-institutional investors.Zomato received a total
bids of 25.83 crore shares as against 71.92 crore shares on the offer
Over 19 crore bids for Zomato shares were received at the cut-off price, the NSE data showed.The Zomato IPO is likely to pave the way for
other digital economy companies to take the public route, with the likes of unicorns such as Flipkart, Paytm and Ola waiting in the wings
The shares of Zomato are likely to be listed on the BSE and NSE on July 27.Zomato is selling shares in the price band of Rs 72-76 per share
and retail investors can bid in lot size of 195 shares up to maximum of 13 lots
Zomato will use the proceeds to fund its organic and inorganic growth initiatives and for general corporate purposes.Zomato's IPO consists
of a fresh issue of Rs 9,000 crore and an offer for sale of Rs 375 crore by the promoter, Info Edge India
Ahead of the IPO, Zomato raised Rs 4,196.51 crore from 186 anchor investors, including New World Fund Inc, American Funds, Tiger Global
Investments Fund, BlackRock Global, Lansforsakringar Asienfond, JPMorgan, Morgan Stanley Investment Fund, T Rowe Price and Canada Pension
Plan Investment Board.Brokerage firm Anand Rathi has recommended subscribing to Zomato IPO from a short term period."At the upper end of the
IPO price band, the offer is valued at 29.9 times of its FY21 market cap to sales
Going forward, industry delivery percentage to net-revenue stands at 5% and with the Zomato average order value of Rs
20 per delivery) the company is well poised and it is also placed at a sweet spot as the first mover advantage in the online food delivery
Additionally, given the strong network effects, increasing frequency of order, huge scope for growth in tier-II and tier-III cities and
large addressable market, we recommend a Subscribe (Short Term) rating to the IPO," Anand Rathi said in a report.Mumbai-based brokerage firm
Motilal Oswal has also recommended subscribing to Zomato IPO for listing gains."Investors with high risk appetite can subscribe for listing
gains given fancy for unique and first of its kind listing in the food delivery business," Motilal Oswal said in a research report.
