Zomato had its historical debut with its public issue on July 14 and saw its initial public offering (IPO) face a healthy demand in the market. The food-delivery giant is likely to finalise its share allotment on Thursday, following which the listing of its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) might follow on July 27. Zomato’s IPO was subscribed over 38.25 times against the 71.92 crore shares during the days it was open for trading. The price band for the IPO was set between Rs 72 to Rs 76 per equity share. The company received bids of over 2,751.27 crore against the total issue size as per information on the NSE. The Rs 9,375 crore Zomato IPO saw the strongest responses from the retail buyers and the Qualifies Institutional Buyers (QIBs), between July 14 and July 16.
Eager to Know Your Share Allotment Status?
With everything coming to a close, investors are now eyeing the share allotment date. The company is supposedly going to finalise the allotment by July 22, 2021, as per information from its DRHP. After the share have been allotted, the refunds for unsuccessful bidders will be done on July 23. Equity share will most likely be credited to the successful bidders’ Demat accounts by July 26. Following this, the equity share trading would most likely commence on July 27.
There are two ways through which investors can check the share allotments prior to the actual listing. One way is through the BSE website and the other is through the IPO registrar’s website.
Taking the BSE Route
Step 1: Go to the official BSE website. Via the URL: (https://www.bseindia.com/investors/appli_check.aspx).
Step 2: It will take you to a page called ‘Status of Issue Application’. There you need to select the ‘Equity’ option.
Step 3: Select ‘Zomato Limited’ from the drop-down menu that is besides the issue name.
Step 4: Input your application number and the Permanent Account Number (PAN). Then you just click the ‘I am not a robot’ to verify yourself and click ‘Search’. This will show you the status of the application.
Using the Registrar’s Website (Link Intime India)
Step 1: Go to the Link Intime India website using the URL: (https://www.linkintime.co.in/IPO/public-issues.html)
Step 2: Select the ‘Zomato Limited – IPO’ option from the drop-down list under ‘Company’.
Step 3: You can enter one of four different credentials to authenticate yourself.
These credentials are the PAN number, your application number, DP Client ID or IFSC code/Account Number. Then you simply submit and view the status of the share allotment.
Grey Market Premium
On Wednesday, the Grey Market Premium for Zomato had gone up to Rs 21. This indicates that the shares were trading at Rs 93 to 97 a piece on the grey market according to reports. This is well over 20 per cent of the market price band set for the IPO, which points to a strong interest in the public issue.
A Most Historical IPO
The IPO stands as the largest one yet to hit the market, with a fresh issue of Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by its existing investor Info Edge. Within the first few hours of the IPO opening, it was subscribed nearly 100 per cent by the retail investor segment. At the end of the three-day trading, the retail investor quota was subscribed 7.87 times. The quota reserved for QIBs was subscribed a total of 51.79 times during the three-day trading period. On the other hand, the quota reserved for the Non-Institutional Investors was booked 32.96 times.
As part of its anchor book allocation, Zomato had raised around Rs 4,196 from its institutional investors. It had allocated 552.17 million equity shares to anchor investors at the upper end of the price band of Rs 76 per equity share. The company will reportedly be worth around $8 billion after this IPO, which will be a landmark achievement as per a Reuters report. The proceeds from this massive IPO will be directed towards the funding of inorganic and organic growth for Zomato as well as other general corporate uses, according to Zomato’s Draft Red Herring Prospectus (DRHP).