Zomato IPO: Zerodha’s platform handled 20 pc of applications

Almost 20 percent of all applications for the Initial Public Offering (IPO) of foodtech unicorn Zomato, which closed for subscription on Friday with very strong investor interest across categories, went through one more unicorn – the stockbroking firm Zerodha.

Nithin Kamath, Co-founder of Zerodha — the online brokerage startup, made the revelation on Twitter, with a witty remark on how Zomato always came to its rescue by delivering tasty food when they were hungry.

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Zomato had a blockbuster IPO in terms of subscription as at the end of the three-day period on Friday, the issue was subscribed 44 times. Interestingly, on day one of the subscription, it was retail investors who had oversubscribed while qualified institutional buyers (QIBs) were the star buyers on the second day. On the last day, the non-institutional investors (NIIs), who are primarily high net-worth individuals, oversubscribed their allotted quota.

Interestingly, a study done by Paytm Money showed that lot more youngsters applied to buy Zomato’s share as against much older investors. It said that 27 percent of those who applied for Zomato’s IPO on Paytm Money on day one were under the age of 25, while 60 percent of them were under 30 years of age.

Paytm Money said the average investor in Zomato's IPO was a year younger than the applicants it has seen for other IPOs on its platform.

The IPO of Zomato will set a new benchmark for the Indian startup ecosystem as it forays into the space of public listing. At the same time, the fintech unicorn Paytm announced its plans of going public and released its draft red herring prospectus (DRHP) on Friday.

Paytm is planning to raise Rs 16,600 crore, and it should open up many avenues for the ecosystem.

At the same time, there are a host of other startups like Policybazaar, Nykaa, Delhivery, and Ola, among others, who are actively looking at going public.