Food delivery giant Zomato is expected to finalise the IPO share allotment this week after closing the public issue last week.
The largest IPO in the current year 2021 received an overwhelming response from the investors with oversubscription of 38.25 times during July 14-16.
The portion set aside for qualified institutional buyers was subscribed 51.79 times, non-institutional investors 32.96, and retail part was booked 7.45 times.
Investors put in more than Rs 2 lakh crore worth of bids for the Rs 9,375-crore issue, including Rs 1.5 lakh crore of bids only by qualified institutional buyers for whom up to 75 percent of offer was reserved. The response for its anchor book was also very strong, through which it mobilised Rs 4,197 crore at a price of Rs 76 per share, on July 13.
The offer comprised a fresh issue of Rs 9,000 crore and an offer for sale of Rs 375 crore by Info Edge. The company will utilise net proceeds from its fresh issue for funding organic and inorganic growth initiatives (Rs 6,750 crore).
Now all investors will be watching out for the share allotment that is expected to be finalised by the company on July 22, as per the schedule available in the prospectus. The share allotment can be checked on the website of either BSE or IPO registrar.
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On the BSE website, an investor has to select issue type 'equity', and issue name 'Zomato Limited'. Further applicant needs to enter 'application number' and 'PAN number'. Finally click on 'search' button to know the application status.
On the IPO registrar's website, one has to select company name 'Zomato Limited - IPO'. Enter either 'PAN number' or 'Application Number' or 'DP Client ID' or 'Account Number/IFSC'. And then finally click on 'Submit' button to know the allotment status.
After the finalisation of basis of allotment, ineligible investors will get their money back in their bank accounts on July 23, and equity shares will be credited to the demat accounts of eligible investors by July 26.
The trading in equity shares will commence with effect from July 27.
Currently the trading in grey market indicated that shares are available at a premium of Rs 15, the IPO Watch and IPO Central data showed. This resulted into a price of Rs 91, a 19.7 percent premium over issue price of Rs 76.
The grey market is an unofficial platform, wherein the trading in IPO shares starts once the price band gets announced, till the listing of shares on the bourses.
"The grey market premium for an IPO does not possess any statistical background and mere just a reflection of the investors' sentiment. More as a sentimental indicator, the grey market premium is a guide that could increase your chance for listing gains but complete reliability over it could dampen the broad context of investing," said Kaushlendra Singh Sengar Founder & CEO at INVEST19.
Zomato is a technology-based food delivery company which started its journey as a content and discovery platform for restaurants. Zomato's technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs.
The company majorly monetises through four sources 1) Food Delivery 2) Dining Out 3) Hyperpure 4) Zomato Pro. Food delivery is the largest segment, contributing 75 percent to the total income in FY21, while Dining out, Zomato Pro and Hyperpure account accounted 11.8 percent, 2.9 percent, and 10 percent to revenue.