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Zomato IPO subscribed 35 times by anchor investors ahead of launch
Zomato allocated about 552 million shares to 186 anchor investors. The shares were sold at ₹76 each to the anchor investors, the top of a marketed range with a minimum price of ₹72. Kotak Mahindra Capital and others are managing Zomato’s IPO.
Zomato IPO, one of the most popular initial public offerings to come in the country in recent times, was got about 35 times more bids from anchor investors than it intended to sell, Bloomberg reported. The Gurgaon-based firm received bids worth $20 billion from large funds, the publication reported, quoting officials aware of the details of the IPO.
Also Read: Zomato IPO opens today. All you need to know
Zomato allocated about 552 million shares to 186 anchor investors. BlackRock, Tiger Global Investments Fund, Fidelity, New World Fund Inc, JP Morgan, Morgan Stanley Asia (Singapore) Pte-ODI, Goldman Sachs (Singapore) Pte -ODI, T Rowe, Canada Pension Plan Investment Board, Government of Singapore, Monetary Authority of Singapore and Abu Dhabi Investment Authority are among the anchor investors.
The domestic investors who participated in the anchor bidding include Kotak Mutual Fund (MF), Aditya Birla Sun Life MF, Axis MF, SBI MF, UTI MF, HDFC MF, ICICI Prudential MF, IDFC MF, Sundaram MF, Edelweiss MF, ICICI Prudential Life Insurance Company and HDFC Life Insurance Company.
The shares were sold at ₹76 each to the anchor investors, the top of a marketed range with a minimum price of ₹72.
At about $1.3 billion, the startup's IPO is set to be India's biggest since SBI Cards & Payment Services Ltd's $1.4 billion share sale in March 2020.
Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Group AG, BofA Securities and Citigroup Inc are managing Zomato’s IPO.
The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head on to grab market share.
Zomato's FY20 revenue had jumped over two-fold to $394 million from the previous fiscal. In February, Zomato had raised $250 million in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.
