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

Zomato IPO Day 1 Subscription

Last Updated: Dec 10, 2022 - 05:48 am 59.1k Views
Listen icon

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.
 

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 01 April 2024

Swing Trading Stocks for the Week

Weekly Market Outlook for 1st April to 5th April

The week gone by was a truncated week of three trading sessions, but it was not short of any action as the index witnessed a smart recovery in three days. Nifty almost tested the previous all-time high above 22500 on the expiry day and ended just above 22300 with weekly gains of a percent.

Stock in Action – Bajaj Finance

Bajaj Finance Movement of Day