Separator

Zomato raised INR 4,197 crore from Anchor Investors; To Launch IPO today

Separator
On July 13, Zomato raised Rs 4,197 crore from 186 anchor investors, a day before the food delivery and restaurant aggregator business launches its initial public offering (IPO) for retail investors.

According to multiple media reports citing sources, Zomato received approximately 30-35 times more bids from anchor investors than it intended to sell in the first place.

Among those who received more than 2% of the anchor book were the Government of Singapore, Morgan Stanley Investment Fund, Tiger Global Investment Fund, Baillie Gifford Pacific Fund, Fidelity Fund, New World Fund, Canada Pension Plan Investment Fund, and Kotak Flexi Cap Fund.

JPMorgan, UTI Mutual Fund, Motilal Oswal AMC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Goldman Sachs India, Abu Dhabi Investment Authority, Franklin Templeton, and HSBC Asset Management are among the other anchor investors (India).

The company informed the stock exchange that it had issued 55.22 crore equity shares to the aforementioned anchor investors at a price of 76 per equity share. A total of 75% of the issue has been reserved for qualified institutional buyers (QIB), with anchor investors accounting for approximately 45% of the total issue size. A quarter of the shares have been set aside for high-net-worth individuals and retail investors.

With this IPO, Zomato hoped to raise Rs. 9,375 crore. InfoEdge will issue approximately 9,000 crore in a new issue and 375 crore in a secondary issue. The company will launch its initial public offering (IPO) for retail investors on Wednesday, July 14, at 10 a.m., with a price range of 72-76.

Stockbrokers and analysts are divided on whether retail investors should subscribe to Zomato's IPO or not. While some have encouraged retail investors to proceed, others have expressed concern about the company's financial performance thus far and in the future.

According to Motilal Oswal, Zomato is in a good position because the online food delivery market is evolving, but predicting the growth trajectory for the next few years is difficult. Valuing such early-stage businesses on a plain vanilla financial matrix might not give the right picture and may look distorted, the brokerage added.