Zomato IPO: Subscribed 1.05 Times on Day 1; 27% Applicants Under 25

As it stands now, 60% of Day-1 Zomato IPO applicants were under the age of 30.

Zomato IPO: Issue Subscribed 1.05 Times on Day-1

(Photo: The Quint)

Restaurant aggregator and food delivery firm Zomato Ltd on Wednesday, 14 July, launched its three-day initial public offering (IPO) comprising a fresh issue of Rs 9,000 crore and sale of shares worth Rs 375 crore by existing investors.

The issue got subscribed 1.05 times at the end of the first day of the IPO, as per data available on the BSE.

The anchor investors’ portion in the public issue of Zomato Ltd on Tuesday was subscribed at Rs 76 per equity share.

Zomato’s maiden offering attracted bids for 756 million shares, worth Rs 5,700 crore, as against 719.2 million on offer in the IPO, which closes on Friday, as per data provided by the stock exchanges, Business Standard reported.

Moreover, the shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 98 percent, while those of non-institutional investors was subscribed nearly 13 percent and that of the retail individual investors (RIIs) was subscribed 2.69 times, The Indian Express reported.

Employees also had a portion set aside for them, which was subscribed at 18 percent.

India’s biggest IPO this year is available for subscription during 14 to 16 July. The subscription for Zomato IPO resumed from 10 am on Thursday, Day 2.

Interesting Trends

Paytm Money said in a release that the IPO saw big demand from the younger generations.

Historically, around 55 percent of IPO applicants on the Paytm Money platform have been under the age of 30.

However, as it stands now, 60 percent of Day-1 Zomato IPO applicants are under the age of 30.

This figure sits on top of a further 27 percent of Day-1 Zomato IPO applicants, who are under the age of 25, News18 reported.

Moreover, women formed 10 percent of the overall applications on Day-1 of the IPO, with a marginally higher ticket size as opposed to the men.

Another trend that took the Zomato IPO by storm was the participation of smaller cities and towns, such as Kodinar in Gujarat, Tuensang in Nagaland, and Rangapara in Assam took part in this historical IPO.

Who Are the Investors?

According to IANS, the investors include New World Fund at 3.91 percent, Tiger Global at 3.87 percent, Fidelity Funds-India Focus Fund at 2.54 percent, Baillie Gifford Pacific Fund at 2.99 percent, Morgan Stanley Asia Opportunity Fund at 2.74 percent, Canada Pension Plan Investment Board at 2.99 percent, Government of Singapore at 2.30 percent, Kotak Flexicap Fund at 2.17 percent, Mirae Asset Large Cap Fund at 1.43 percent, and Franklin India Flexi Cap Fund at 1.95 percent.

A total of 186 investors participated in the anchor investors portion of the public issue and raised over Rs 4,196 crore in lieu of 55,21,73,505 equity shares at Rs 76 each.

Zomato has gone public as a professionally run company as none of its 74 shareholders hold more than 25 percent stake in it. Founded in 2008, Zomato has three businesses: Food delivery, Hyper Pure, and Zomato Pro.

According to its IPO filings, Zomato's international segment contributes about a tenth to its business and 2.5 percent to its total assets.

(With inputs from Business Standard, News18, and The Indian Express)