Zomato IPO closes with a bang, subscribed 38.25 times

Zomato IPO Day 3 Subscription

There was not much of a surprise that the Zomato IPO saw substantial interest from the Qualified Institutional Buyers (QIBs). After all, we had seen the huge appetite for Zomato when the company did its anchor investment placement on Tuesday. We will come back to the more elaborate QIB portion later, but let us first look at the other portions. The retail portion got subscribed 7.45 times at the close of the IPO, not much of a change from the end of second day. Nearly 77% of retail bids came at the cut-of price. The HNI allocation of 19.43 crore shares saw bids for 640.56 crore shares, implying an oversubscription of 32.96 times.

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Let us come back to the QIB subscription. The Zomato IPO had a QIB allocation of 75%, while HNI had 15% and retail just 10%. However, the anchor investors got allocations worth Rs.4,196 crore implying that just about 38.88 crore shares were left in the QIB quota for IPO subscription. Against these shares on offer, Zomato elicited demand for 2014 crore shares, implying an oversubscription of the residual QIB portion by 51.79 times. While the FPIs were the most aggressive among the QIBs, domestic mutual funds and insurance companies also actively applied for the Zomato IPO.

The first signals of QIB appetite for the Zomato IPO was evident in the roadshows and later in the anchor placement on Tuesday. The anchor book, it may be recollected, was subscribed nearly 35 times. The anchor book allocation was made to marquee global investors like Government of Singapore, Morgan Stanley, Tiger Global, Ballie Gifford, Fidelity Funds, Canadian Pensions, New World Fund, Nomura, Goldman Sachs etc. Domestic anchor investors included UTI MF, HDFC MF, ICICI Pru MF, IIFL MF etc.

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