Zomato IPO oversubscribed 4.8 times at the end of Day 2; subscription ends on July 16

The highly awaited Zomato IPO finally hit the primary market on July 14, and within two days, it has seen an oversubscription of 4.18 times by retail investors. Zomato, the largest food delivery company in India, is set to launch an IPO valued at a staggering Rs. 9,375 crore. The closing date of Zomato's record-breaking IPO is July 16.

Zomato IPO subscription till now

Zomato got bids for 344.76 crore shares against 71.92 crore shares on offer as per the stock exchange's data at the end of day two. The Zomato IPO, which is set to be India's biggest since March 2020, saw retail investors subscribing to 34.88 crore shares against 12.95 crore shares reserved for them on the opening day. A similar number of bids were received on Thursday. This means that retail investors have sought a total of 61.25 crore shares or 4.7 times the quota reserved by them.

Zomato IPO subscription break-up and valuation

The Zomato IPO is expected to receive a stunning valuation of Rs. 64,365 crore, making it the second-biggest IPO since SBI Cards and Payment Services' Rs. 10,341 crore issue in March 2020. Zomato's IPO also comprises an offer-for-sale (OFS) worth Rs 375 crore by existing investor Info Edge (India), which is the present company of Naukri.com. Zomato is expected to utilize the proceeds from the new issue to fund organic and inorganic growth initiatives, among others. Zomato, which was incorporated in 2008, is already present in 525 cities in India, with 389,932 active restaurant listings.

Since Zomato has already received Rs. 4,196.51 crore from 186 anchor investors on July 13, a day before the issue was opened, the IPO size has been reduced to Rs. 5,178.49 crore from the Rs. 9,375 crore earlier. The anchor investors include the likes of Tiger Global Investment Fund, Blackrock, Fidelity, JPMorgan, Morgan Stanley, T Rowe Price, Canada Pension Plan Investment Board, Government of Singapore, SBI Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, UTI Mutual Fund, Motilal Oswal AMC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Goldman Sachs India, Abu Dhabi Investment Authority, Franklin Templeton, HSBC Asset Management (India), to name few of them.