Zomato IPO – With the initial public offering (IPO) of Indian food tech giant Zomato completely subscribed on its dispatch day yesterday, it denotes another milestone for India’s online startup ecosystem. While numerous other online firms, prominently, Naukri (InfoEdge), Indiamart and even Infibeam have had fruitful IPO’s before, the sheer size ( Rs 9375 crores) and expansiveness of Zomato’s arrive at marks it out as a play on the Indian consumer market.
At the end of its day 1 yesterday, the issue was subscribed 1.05 occasions with the company getting offers for 75.6 crore shares out of the 71.92 crore shares on offer.
The company had effectively distributed around 55.22 crore shares out of the total 130.21 crore shares offered in the IPO on July 13 to secure investors. Zomato company had gotten Rs 4,196 crore from a total of 186 anchor investors including any semblance of Tiger Global, Goldman Sachs, Blackrock Global Investments, JP Morgan Funds, T Rowe Price, Steadview Capital and Baillie Gifford, and numerous shared assets among others on Tuesday before the offer went live on Wednesday morning.
According to the information delivered by the Bombay Stock Exchange(BSE), the segment distributed for Qualified Institutional Buyers (QIBs) held for Foreign Institutional Investors (FIIs), Domestic Financial Institutions(Banks/Financial Institutions(FIs)/Insurance Companies) and Mutual Funds was subscribed 98%. Unfamiliar Institutional Investors (FIIs) stood out, offering for almost 36.85 crore shares out of the total 38.1 crore partakes in the QIB segment of the offer.
The segment apportioned for retail investors was just 9.95% of the total offer, considering the size of the offer, however as the most oversubscribed bit toward the finish of the primary day, retail investors plainly need a slice of the pie too. The retail investors’ segment was subscribed almost 2.69 occasions as the company got offers for almost 35 crore shares for the 12.95 crore shares on offer.
The amount held for Non Institutional investors and Zomato workers remained generally cold and the company got offers for just 13% and 18% of offers for their individual bits.
The fruitful posting will be an abundance creation occasion not only for its initial Investors like Info Edge however for the administration group and workers holding ESOPs. For example, the Zomato stock held by FoodieBay ESOP Trust and Co-author/CEO Deepinder Goyal is worth almost Rs 2127 crore and Rs 2808 crore separately at these valuations.
Other co-founders Akriti Chopra and Gunjan Patidar hold exceptional ESOPs worth Rs 90 crore and Rs 116.8 crore separately. According to Fintrackr gauges, the extraordinary ESOPs held by the 10 key managerial personnel identified in the offer report are worth over Rs 652 crore at remove cost.
With a few internet economy companies including Paytm, Delhivery, Nykaa, MobiKwik, and CarTrade set for the public markets too, 2021 could yet go down as the year Zomato drove India’s internet startups to the next level of penetration, reach and market approval.