India’s biggest initial public offering (IPO) this year offered by food delivery portal and restaurant aggregator Zomato is open today on Wednesday, 14 July. The Rs 9,375 crore which will remain open till 16 July has a fixed price band of Rs 72-76 per equity share.
Zomato is the first Indian unicorn and food delivery company to launch its IPO. It is backed by Jack Ma’s Ant group. Here are some of the details about the Zomato IPO:
- The total size of the IPO is Rs 9,375 crore of which the fresh issue of equity shares is worth Rs 9,000 crore.
- Out of the total offer, investor Info Edge (India) has an offer-for-sale (OFS) worth Rs 375 crore.
- Subscribers can bid for 195 equity shares and in multiples thereafter.
- Ten percent of the issue is reserved for retail investors.
- As much as 75 percent of the Zomato IPO will be reserved for qualified institutional buyers (QIBs).
- Non-institutional investors (NIIs) will have 15 percent of the IPO reserved for them.
- The company has raised Rs 4,196 crore from 186 anchor investors at the price of Rs 76 per share for 55,21,73,505 equity shares.
- The book-running lead managers of the IPO are Morgan Stanley India Company, BofA Securities India, Kotak Mahindra Capital Company, Citigroup Global Markets India and Credit Suisse Securities (India). Zomato IPO has received subscribe rating from several analysts, however, Moneycontrol reports that the loss-making status of Zomato is a concern. The funds generated from the IPO will be used for funding organic and inorganic growth initiatives of the company.