Food delivery major Zomato has raked in as much as Rs 4,200-crore via sales of 55.2 crore shares to a group of foreign and domestic investors on day 1 of bidding in its Rs 9,375-crore IPO.
According to the BSE, the retail portion of the offer was subscribed 2.7 times, the institutional part was nearly subscribed fully, the high net worth (non-institutional) part 13% and the part reserved for employees 18%. Overall the total IPO was subscribed 1.05 times. The issue, being offered at a price of Rs 72-76 per share, will close on Friday.
A few hours before the opening of the Rs 9,375-crore Zomato IPO, the allotment to anchor investors was done at Rs 76 per share, at the upper end of the Rs 72-76 IPO price band.
Among the top names among the 186 funds that were allotted shares on Tuesday included global PE majors Tiger Global and Blackrock, along with financial powerhouses like Fidelity, Morgan Stanley, JP Morgan, T Rowe Price and the government of Singapore. Among the domestic majors were SBI MF, HDFC MF and ICICI Prudential MF.
Merchant banking sources said that the total demand for the Zomato IPO during the anchor investment process was for about Rs 1.5 lakh crore, indicating an oversubscription of about 35 times the number of shares that were up for pre-IPO allotment.
Further data relating to those who applied on Day 1 in the Zomato IPO pointed a shift in investor profile, PayTM Money, one of the tech-driven broking houses, said. According to PayTM Money data, more than one in five investors in the IPO were first-timers. Other than top cities like Delhi, Bengaluru, and Mumbai, first-time participation was seen from smaller towns like Kodinar in Gujarat, Tuensang in Nagaland and Rangapara in Assam.
It also revealed that 60% of the IPO investors on its platform were under the age of 30 years and 27% were under 25 years. Earlier, about 55% of the IPO investors were under the age of 30 years. The analysis also showed that the average investment in Zomato IPO on Day 1 was 20% higher than the average investment in previous IPOs on the PayTM Money platform.