Zomato IPO Subscribed 5.06 Times; Bankers Expect Big HNI Play Today

The Rs. 9,375 crores ­­initial public offering (IPO) of Zomato was subscribed 5.06 timer on Thursday, the second day of the offer, driven by demand from institutional and retail investors. Rich investors kept to the sidelines but bankers expect them to take the plunge on Friday-the final day of the offering.

Investor bids for the IPO came in for almost 344.77 crores shares on BSE and NSE combined against the issue size of 68.14 crores shares.

The portion reserved for retail in vectors was subscribed 4.99 times while the qualified institutional buyer segment was subscribed 7.45 times. The amount reserved for non-institutional investors or high net worth individuals (HNIs) was subscribed 48%. Generally, the HNI bids come on the last day of the offer to keep the cost of borrowing lower. The Zomato IPO was fully subscribed on Wednesday, the day of its launch. The retail portion received more bids than what was set aside for them within an hour of the issue opening.

“IPO of new age companies in Indian market can attract global investors who have burnt their hands in Chinese new age companies,” said Nilesh Shah, MD, Kotak Mahindra Asset Management Company.  S-ET

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