Zomato's Rs 9,375 crore initial public offering (IPO), the biggest public offering in more than a decade, closes for subscription today. The IPO of the online food delivery service provider is the second-largest IPO after the Rs 15,199.44 crore Coal India share sale way back in October 2010. It is also the first Indian mega startup to go public. The leading online food delivery service provider's IPO opened for bidding on Wednesday, July 14, and will close by 5:00 pm today.
Zomato's shares have been in high demand among retail individual investors and qualified institutional buyers. The IPO was subscribed nearly eight times by noon on the third and final day of the issue today, according to subscription data on the exchanges. The portion reserved for retail investors in the IPO was subscribed 5.75 times by 12 noon on Friday. The portion set aside for the non-institutional investors (NII) was subscribed 1.20 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 12.06 times - the highest among the three groups of investors. Ahead of the IPO, Zomato had raised more than Rs 4,196 crore from anchor investors.
The IPO consists of a fresh issue of Rs 9,000 crore and an offer for sale of Rs 375 crore by the promoter - Info Edge India. The restaurant aggregator will use the IPO proceeds to fund organic and inorganic growth initiatives and for general corporate purposes.
Zomato has fixed the price band of the primary market offering in the price band of Rs 72-76 per share. The shares of Zomato are likely to be listed on stock exchanges BSE and NSE on July 27.
Backed by China's Ant Group, Zomato is the most prominent startups in the country today and also has a presence in 24 countries.
Zomato IPO is likely to pave the way for other leading digital firms, such as Paytm, Flipkart and Ola, to go public. On Friday, Paytm filed draft papers for an initial public offering of up to Rs 16,600 crore, according to market regulator SEBI.