Investors Dig in, Zomato IPO Subscribed Over 40X

Zomato initial public offering (IPO) was subscribed 40.38 times, generating demand of Rs. 2.13 lakh crores, the most in 11 years and the third highest in Indian capital market history. The IPO, which opened Wednesday and closed Friday, set a record for anchor investors and drew the second highest ever applications.

In 2008, the Rs11,563-crores Anil Dhirubhai Ambani Group-pro-mooted Reliance Power issue was subscribed 73 time, with demand at Rs8.45 lakh crores. The Rs. 15,199 crores Coal India IPO in 2010 saw demand worth Rs. 2.32 lakh crores.

Investors bid for almost 27.51 billion shares of Zomato on the BSE and NSE combined against the issue size of 681.4 million.

Retail investors’ portion was subscribed 7.87 times, while the figure was 54.71 times for qualified institutional buyers (QIB). The amount reserved for non-institutional investors or high net-worth individuals (HNIs) was subscribed 34.80 times. The employee quota was undersubscribed, with demand at 68% of the shares set aside for them.

The IPO received more than 3.23 million applications, the second highest after the Reliance Power offer, which got 4.78 million applications. Earlier this year, the Rs. 1,176 crores Indigo Paints’ IPO, which was subscribed 117 times, got 3.02 million applications. S-ET

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