This Article is From Jul 16, 2021

Zomato IPO Subscribed Over 38 Times On Final Day Of Issue

Zomato IPO: The food delivery service provider's IPO was subscribed 38.25 times on the final day of the issue. Qualified institutional buyers showed massive interest in Zomato's shares today

Zomato IPO Subscribed Over 38 Times On Final Day Of Issue

Zomato IPO: Portion reserved for QIB was subscribed 51.79 times by 5:00 pm today

Zomato's ₹ 9,375 crore initial public offering (IPO) is subscribed 38.25 times so far on the third and final day of the issue, according to subscription data on the exchanges. The IPO of the leading online food delivery service provider opened for investors on Wednesday, July 14 for a period of three days. Zomato's shares are in high demand among qualified institutional buyers today, while retail individual investors showed tepid interest. (Also Read: Zomato IPO - Biggest Since Coal India, Ends Today )

The portion reserved for retail investors in the IPO was subscribed 7.45 times by 5:00 pm today. The portion set aside for the non-institutional investors (NII) was subscribed 32.96 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 51.79 times - the highest among the three groups of investors. 

The IPO was subscribed almost five times on the second day of its issue yesterday and fully subscribed at 1.05 times at the end of the first day. Retail investors showed overwhelming interest on the first day as the portion reserved for them was oversubscribed within hours of opening. 

The company has fixed the primary market offering's price band at ₹ 72-76 per share. Zomato's shares are likely to be listed on stock exchanges BSE and NSE on July 27. The public offer consists of a fresh issue of ₹ 9,000 crore and an offer for sale of ₹ 375 crore by promoter - Info Edge India. 

The Zomato IPO comes at a time when markets are near their all-time highs and there is growing interest from several digital companies- such as Paytm, Flipkart, and Ola to go public and further, list on the bourses.

Zomato will utilise the IPO proceeds to fund organic and inorganic growth initiatives and for general corporate purposes. Backed by China's Ant Group, Zomato is the first Indian mega startup to go public. Incorporated in 2008, Zomato is now one of the leading online food service platforms - in terms of the value of food sold, and has a presence in 24 countries overseas.