Zomato IPO gets 1.05X subscription at the end of Day 1

The Rs.9,375 crore Zomato IPO got subscribed 1.05 times overall at the end of the first day of subscription. The IPO will remain open till Friday 16 July. The QIB portion was subscribed 0.98X, while the non-institutional HNI portion got subscribed just 0.13X. Applications for the HNI and QIB segment tend to get bunched on the last day of the IPO. The retail portion got subscribed 2.70X, but retail quota is just 10% in the Zomato IPO. The IPO is priced in the band of Rs.72-76.

The IPO of Zomato comprises a fresh issue of shares worth Rs.9,000 crore and an offer for sale worth Rs.375 crore to give an exit to Info Edge. With 2 more days to go for the IPO, the HNI portion subscription will largely depend on the demand for funded applications. However, the QIB subscription is likely to be robust, if you go by the anchor investor demand evinced on Tuesday 13 July.

On 13 July, when the Zomato issue opened for anchor investors to raise Rs.4,196 crore, the total demand from institutions was in excess of Rs.100,000 crore. Eventually, Zomato allocated a total of 55.22 crore shares of Zomato to QIBs priced at the upper band of Rs.76 per share. Out of the 55.22 crore shares allocated, 36.81 crore shares were allocated to foreign investors like Government of Singapore, MAS, Wellington, Nomura, Aberdeen, Schroders among others. A total of 18.41 crore shares were allocated to domestic institutions like SBI MF, Birla Sun Life Insurance, Kotak MF, Nippon Life MF, HDFC MF, IIFL MF etc. That is a hint that QIB subscription in the IPO could be really very strong.