Zomato will start trading on the stock exchanges on Friday, four days ahead of its earlier schedule, after a bumper response to the food delivery company’s IPO last week. “Effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” BSE said in a notice.
BSE said in a notification on Friday that the bourses will hold a special pre-open session for the stock for 15 minutes ahead of its listing at 10am.
“With the improved sentiments in the primary and broader market, I expect Zomato may list in three digits. Zomato’s listing will set a benchmark for upcoming startup IPOs,” Abhay Doshi, founder of UnlistedArena.com, was quoted as saying by Mint Live.
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Zomato shares were quoting at a premium of around ₹23 in the grey market ahead of the IPO suggesting the possibility of listing gains, Mint Live reported citing market observers.
Zomato IPO was India’s biggest initial share sale offer since March 2020. The IPO, which will give Zomato a valuation of ₹64,365 crore, is being touted as the second-biggest since SBI Cards and Payment Services’ ₹10,341 crore issue in March 2020.
The allotment process for Zomato’s shares was conducted on Thursday for investors who participated in the company’s initial public offering (IPO) last week. Zomato fixed the price at the higher end of the offer band of ₹72-76 for 71.92 crore shares.
Qualified institutional buyers (QIBs) bid almost 52 times the quota reserved for them, non-institutional investors sought 640 crore shares against their quota of 19.43 crore and retail investors bid 7.45 times against the 12.96 crore shares allotted for them. The only category that wasn’t fully subscribed was the shares reserved for company employees as they sought just 62 per cent of the 65 lakh shares reserved for them.
The Zomato IPO opened for subscription on July 14 in a price band of ₹72-76 per share and closed on July 16. According to the information provided in the draft red herring prospectus, the Zomato IPO comprised a fresh issue of equity shares worth ₹9,000 crore and an offer-for-sale (OFS) worth ₹375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com.
Zomato has said it will utilise the IPO proceeds for funding organic and inorganic growth initiatives and general corporate purposes.