Shares of Zomato seem to be in high demand a day ahead of the unicorn firm’s initial public offer (IPO). The grey market premium (GMP) of the IPO has risen 5% today to Rs 13 to 17 per share. Currently it stands 20% higher than the issue price. On Monday, GMP of the IPO stood at Rs 8 to Rs 12 per share.
Price band of the IPO has been fixed at Rs 72-76 per share. As per the current GMP, Zomato is likely to be listed at Rs 93 per share on bourses.
The IPO will close for subscription on July 16.
Allotment of shares will be done on July 22 and the stock is likely to be listed on BSE and NSE on July 27.
The Zomato IPO is one of the largest public offerings in recent times as the company is planning to raise Rs 9,750 crore.
The lot size of Zomato IPO is 195 shares for which an investor will have to spend Rs 14,820. A retail individual investor can apply for up to 13 lots (2,535 shares) by spending Rs 192,660.
The company is eyeing valuation of around $8.5 billion through the IPO.
It will issue shares to anchor investors today.
The food delivery app will garner almost half its issue size of around $560 million from institutional investors at the upper end of the price band of Rs 76 per share, according to a report in Moneycontrol. More than 100 end investors will be allotted shares as part of the anchor book for the IPO, the report stated.
The share sale comprises a fresh issue of shares worth Rs 375 crore and an offer for sale of Rs 9,000 crore by its current promoter Info Edge India Ltd. Total 65 lakh shares have been reserved for employees of the company.
The face value is Rs 1.00 per equity share. Zomato filed its draft red herring prospectus (DRHP) in April 2021 with SEBI.
The Zomato IPO has been pre-poned from July 19 to July 14 due to strong domestic demand for the issue.
According to media reports, there been great demand for the shares of Zomato from foreign investors too. A few foreign institutional investors (FIIs) may enter the Indian market for the first time due to the IPO.
Info Edge (18.55 per cent) is one of Zomato’s leading investors, along with Uber BV (9.13 per cent), Alipay Singapore Holding Pte Ltd (8.33 per cent), Tiger Global (6 per cent), Sequoia Capital (5.98 per cent), co-founder Deepinder Goyal (5.51 per cent), and Temasek Holdings subsidiary (3.65 per cent).
On July 5, Info Edge said it would sell only 50 per cent, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in the IPO.