Zomato, the most popular food delivery platform in India, is all set to launch its initial public offering (IPO) worth Rs 9,375 crore on Wednesday at a price band of Rs 72–Rs 76. There has been a lot of buzz around Zomato IPO as it is the first large consumer tech company getting listed. Investors can subscribe to Zomato IPO till July 16. Zomato IPO consists of fresh issuance of equity shares of Rs 9,000 crore, and an offer for sale (OFS) of Rs 375 crore by existing selling shareholder Info Edge. Investors can bid for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter.
Zomato has raised Rs 4,196 crore by allotting 55.2 crore shares to anchor investors at Rs 76 per share. Some of the key Marquee investors who were allotted shares in the anchor book include Tiger Global Investments Fund, BlackRock Global, Fidelity Funds, JPMorgan, Morgan Stanley Investment Fund, and T Rowe Price.
“Strong participation by institutions in the anchor book bodes well for the IPO and we expect continued strong demand for the IPO from both institutional and retail investors alike. Given strong delivery network, high barriers to entry, expected turnaround and significant growth opportunities in tier-II and tier-III cities, we believe that Zomato will command a premium to global peers and hence have a ‘subscribe’ recommendation on the IPO," said Jyoti Roy — DVP — Equity Strategist, Angel Broking Ltd.
To book an IPO and trade them in the market, an investor needs demat account, bank account and trading account. Buyers can apply for IPOs through brokerage platforms and popular applications like Groww, Upstox and Paytm Money.
How to book Zomato IPO via Upstox
Step 1: Login to the Upstox application or website with your credentials.
Step 2: Select the IPO that you want to invest in and create an IPO application.
Step 3: Add up to three bids within the price range.
Step 4: Confirm your application.
Step 5: Accept the UPI mandate and block funds on your mobile UPI app.
How to book Zomato IPO via Groww
Step 1: Open Groww App and scroll down to stocks tab and click on IPO section.
Step 2: You can see the list of live IPOs on the next page. The upcoming IPOs will also be there.
Step 3: Pick Zomato IPO from the list
Step 4: You have to mention the number of lots you want to apply for in the next page.
Step 5: You will be asked to furnish UPI ID. Once you complete the process, the money will be blocked from your account.
Step 6: The status of your IPO application will show next to the application number.
How to invest in Zomato IPO via Zerodha’s Kite application:
Step 1: Log in to the mobile app and select the IPO option under the console
Step 2: Select Zomato IPO
Step 3: Enter your UPI ID from the BHIM app
Step 4: Select investor type for your application and enter the lot size
Step 5: Confirm and submit. Accept the mandate request for proceeding with IPO on your BHIM UPI app.
Investors can also use Paytm Money to apply for Zomato IPO. The brokerage firm has recently allowed the users to place their bids even before the IPO hits the market. Investors can follow the similar steps to subscribe Zomato IPO on Paytm. You have to fill the necessary details like lot size and confirm the payment from UPI app.
Once an investor applies for an IPO, the amount gets blocked from the bank account. If the buyer get shares once the allotment is finalised, the amount will be deducted from the account. If the share in the IPO is not alloted to the investor, the money will be unblocked and available anywhere.