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

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. 

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News & Updates

• Meesho, India's first social commerce unicorn, ranked #1 across categories on Google Play Store India, going past Instagram, WhatsApp, Snapchat, Facebook, and other social media apps. It has crossed over 50 million downloads on Android.

• Baba Ramdev announced that Patanjali group's turnover touched Rs 30,000 crore last fiscal on the back of the acquisition of Ruchi Soya through the insolvency process, contributing more than half to the overall turnover of the group.

• Amazon India has announced the launch of the 'Spotlight North East' storefront on its marketplace. The storefront will enhance the visibility of unique local products and hidden gems from the region and showcase them to Amazon customers across India.

• Non-profit India Blockchain Alliance (IBA) and public relations consultancy Adfactors PR signed an MoU to foster conversations around blockchain technology to enable the country to lead the world in its adoption.

• Snapdeal signed an agreement with FICCI Ladies Organisation (FLO) and has launched an online programme to help women-led SMBs in the country digitise their operations and bring them online.

Before you go, stay inspired with… 

 “The first rule of entrepreneurship is that there is no rule.”

— Deepinder Goyal, Founder and CEO, Zomato

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