Zomato IPO update: Issue subscribed over 30 times so far
The public offer received bids for over 2,199 crore equity shares against an IPO size of 71.92 crore, stock exchange data showed
The Initial public offering (IPO) by Zomato got oversubscribed over 30 times on the last day of the bidding process till 2.55 pm (IST). The public offer received bids for over 2,199 crore equity shares against an IPO size of 71.92 crore, stock exchange data showed. The portion reserved for qualified institutional investors was subscribed over 42 times so far, while the quota reserved for retail investors got subscribed by over 6 times.
Non-institutional investors put in bids for 4,71 crore shares against their reserved quota of 19.42 crore. The portion set aside for employees has been subscribed 54%.
Analysts hold a mixed view on loss-making food ordering platform Zomato whose Rs 9,375 crore IPO opened for subscription on July 14. The company is aiming to raise Rs 9,375 crore through an initial share sale which will conclude on July 19. The price band for the issue has been fixed at Rs 72-76 per share.
What’s on offer?
The total IPO size comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd. Market watchers believe that Zomato has sacrificed operating profitability to achieve faster growth and has been reporting losses.
For the financial year ended March 31, the company has managed to reduced its losses by over 66% as its annual loss dropped from Rs 2,385.6 crore in FY20 to Rs 816.4 crore in FY21. The company posted a loss of Rs 1,010.51 crore in FY19. On the other hand, the revenue of the company increased to Rs 1,993.80 crore in FY21 from Rs 1,312.58 crore in FY19. The figure stood at Rs 2,604.70 crore in FY20.