Zomato, India’s biggest IPO so far, has announced the share allocation status on Thursday. The much-awaited Rs 9,375 crore Zomato IPO was subscribed over 38 times. Investors who have bid for the issue can the Zomato share allotment status on BSE website. There is another option of checking the allotment details via online portal of Link Intime Private Limited. There has been reports that the food delivery platform might advance the listing date to July 23 to July 27.
Zomato IPO opened for subscription on July 14 and closed on July 16. Investors put a bid worth Rs 2.13 lakh crore for Zomato IPO, the third-highest in Indian market. The portion reserved for qualified institutional buyers (QIB) was subscribed 54.71 times. The non-institutional investors attracted 34.80 times subscription while the retail investors booked 7.87 times.
The food-delivery startup fixed the the IPO price at the upper end of the price range of ₹ 72-76. Zomato public offer comprised a fresh issue of equity of as much as Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge (India). Zomato had garnered ₹4,196 crore from 186 anchor investors ahead of the IPO by allocating 552.2 million shares at Rs 76 apiece.
In the unofficial marker, Zomato shares were commanding a Rs 22-23 premium, over a issue price of Rs 72-76 apiece. The grey market premium of Zomato has significantly increased from Rs 10 on July 14. Over 30 per cent jump in Zomato’s unlisted shares signal a solid listing gains for the food delivery startups, the analysts believed.
Investors are eagerly waiting India’s first startup unicorn listing. Commenting on listing gain from the Zomato IPO, Ashok Holani, director at Holani Consultants Private Limited said, “As per the financials of the company, Zomato IPO listing gain can be expected around 25 percent or roughly near ₹15 per Zomato shares on the listing date of the public issue."
To Check Zomato IPO Status via BSE
1) Goto https://www.bseindia.com/investors/appli_check.aspx
2) Under the issue type, click Equity
3) There you will find issue name. Select Zomato Limited in the dropbox
4) Write the application number and add PAN and ID card details
5) Click on ‘I am not a Robot and hit a submit’
Investors can also check Zomato share allotment status via Link Intime India Private Limited, the registrar to the issue.
1) Go to the online portal of Link Intime India Private Limited https://linkintime.co.in/MIPO/Ipoallotment.html
2) Select the IPO in dropbox. The name will be populated once the allotment status is finalised.3) Select either one of the three modes: Application number, Client ID or PAN ID
4) In application type, select between ASBA and non-ASBA
5) You have to enter the details of the mode that you have been selected.
6) Then, fill the Captcha and press the submit button.
“After such an exceedingly successful large sized IPO, the balance sheet & brand position of the company has enhanced a lot. Post the issue, cash and equivalents is expected to be better than Rs 12,000 crore. The funds will be used for organic and inorganic growth. Organically, we should expect sharp recovery in Gross Order Value (GOV) post unlocking and increased presence in the country. Importantly, the management’s focus in the future will be to improve the profitability of the company with better services & offers than deep discounts," said Vinod Nair, head of research at Geojit Financial Services.
“However, history of high losses, rise in expenditure in the future (advertisement & promotion) and stiff competition will be the key risk for the business outlook. This can impact the performance of the stock price in the short to medium-term, especially being highly valued at 30x Mcap/Sales on FY21 basis," Nair added.