Zomato may go for early listing on Friday; grey market premium surges

There’s a huge buzz that Zomato may be preponing its listing to Friday, July 23. Earlier the potential date for listing was being seen as July 27. Nothing has been made official by the company but according to the sources, there is a wide possibility that Zomato may prepone listing. What’s more is that this news has led the grey market premium to surge further.

This D-street buzz of early listing has led the company to now command a premium of Rs 24-25 in the grey market or the unofficial market. This suggests a 33-35% premium listing to the IPO price of Rs 76 on the upper band. This indicates the listing could happen in at Rs 99-100, although it should only be looked as a signal.

Abhay Doshi, Founder Unlisted Arena told Money9, “Grey market premium as of now is Rs 24-25. The trend has been moving upward since the IPO closure. While the grey market premium was Rs 14 last week, it has shot up quickly especially with the buzz of early listing. The recent blockbuster listings of GR Infra and Clean science have also boosted primary market sentiments.”

Zomato share price premium in the grey market has gone up from Rs 10 on July 14th (IPO launch date) to Rs 25 today i.e. 22 July 2021 (IPO allotment date).

Zomato IPO’s price band was attractive at Rs 72-76 per share. The company launched the issue to raise Rs 9,375 crore and received an overwhelming response. The issue got over-subscribed 38 times. The qualified institutional buyers (QIB) portion was subscribed 54.71 times while those reserved for non-institutional investors (NIIs) 34.80 times and the retail quota got subscribed by 7.87 times.

While there may be a possibility of earlier listing, one most note that several processes like hare allotment, credit of shares and refunds have not yet closed.

Investors, who had bid for the issue, can check the allotment status on the Bombay Stock Exchange (BSE) website.