55.2 crore shares allotted, up to 20 percent subscribed
Mumbai, July 14 (IANS)| Online food delivery company Zomato’s much-awaited initial public offering (IPO) opened at Rs 72-76 per share on Wednesday and was completely received by retail investors. The retail segment of the offering is fully subscribed in just one hour. About 20 per cent of the IPO has been subscribed so far on the first day of bidding.
The company on Tuesday said it has raised Rs 4,196 crore from several leading institutional investors under anchor book allocation. It has allotted 55.2 crore equity shares to anchor investors at a price of Rs 76 per share. The Anchor Book had participants from the Government of Singapore, BlackRock, Goldman Sachs, Abu Dhabi Investment Authority among others.
Jyoti Roy, DVP-Equity Strategist at Angel Broking Ltd, said the anchor portion saw strong participation from global investors as well as domestic mutual funds, who were allotted 18.4 crore shares aggregating to Rs 1,399 crore out of Rs.
Roy said “Strong participation of institutions in the anchor book augurs well for IPOs and we expect strong demand for IPOs from both institutional and retail investors alike. Strong distribution network, high barriers to entry, expected turnaround And given the significant growth opportunities in Tier-II and Tier III cities, we believe Zomato will capture a premium over its global peers and hence recommend ‘Subscribe’ on IPO.” The issue includes an offer for sale by Info Edge for Rs 375 crore and a fresh issue of Rs 9,000 crore.