And so it begins: Zomato’s fabled journey to the bourses

The first day of Zomato’s IPO saw the issue subscribed by 1.05 times with strong participation from retail investors, who bid nearly 2.70 times the allocated shares.

Thursday July 15, 2021 , 4 min Read

Good morning,

Investor enthusiasm for the Zomato IPO — the first foodtech startup listing in India — is palpable as the food services platform's IPO opened for subscription on Wednesday.

The first day of Zomato’s IPO saw the issue subscribed by 1.05 times with strong participation from retail investors, who bid nearly 2.70 times the allocated shares.

Zomato said it finalised the allocation of 552.2 million shares to anchor investors at Rs 76 per share, the upper end of its Rs 72-76 IPO price band.

The Gurugram-based company received bids for 75,57,47,850 shares as against the IPO issue size of 71,92,33,522, as per information available on the stock exchanges.

Zomato’s Rs 9,375 crore IPO comprises Rs 9,000 crore worth of fresh issue of equity shares and Rs 375 crore of a secondary share sale by InfoEdge. The company is eyeing a post-issue valuation of Rs 64,365 crore.

On Tuesday, the company's anchor book saw a strong response from global and domestic institutional investors, with the unicorn raising Rs 4196.5 crore, or about 45 percent of its total issue size, from 186 anchor investors, including marquee global names like Tiger Global, New World Fund, and Fidelity, and domestic mutual funds like HDFC, SBI, and Axis Bank.

No wonder, Zomato Founder Deepinder Goyal had to order a "triple breakfast" as a way to beat stress as his company started the journey of going public.

The Interview

In the latest episode of #HumanBeyondResources, WeWork India’s Head of People, Priti Shetty, discusses the role co-working spaces will play as more and more companies experiment with remote working even in a post-pandemic work, the future of the workspace, and more.

Editor’s Pick: 100X Entrepreneur podcast

Gaming and sports media platform Nazara Technologies went public in March this year. Nitish Mittersain, Founder and Managing Director of Nazara Technologies, says one of the biggest advantages it has as the only listed online gaming company in India is that it allows them to offer listed equity to its partners enabling a big opportunity.

In this episode of the 100X Entrepreneur podcast, Nitish talks about the company’s initial journey, challenges, and the road to success. Read more.

*Nitish Mittersain, Founder and Managing Director of Nazara Technologies [Image Credit: 100X Entrepreneur Podcast]*

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