Zomato IPO: Opens today; Key details investors should know before subscribing

Online food delivery platform Zomato's initial public offer (IPO) is scheduled to open for subscription today, i.e. on July 14, 2021. The price band of Zomato IPO is fixed at Rs 72-76 per share. The company aims to raise Rs 9,375 crore through the offer.

The IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge (India). Info Edge is the parent company of Naukri.com.

The IPO will be available for subscription till Friday, July 16, 2021. Investors can bid in a lot of 195 equity shares and multiples thereafter, translating to Rs 14,820, at the upper price band, to get a single lot of Zomato. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The Zomato IPO will have 75 per cent reserved for qualified institutional buyers (QIBs), 15 per cent will be reserved for non-institutional investors (NIIs) and the remaining 10 per cent of the issue will be available for retail investors.

The proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives and for general corporate purposes.

Ahead of the IPO, Zomato has raised over Rs 4,196 crore from 186 anchor investors at Rs 76 apiece in lieu of 55,21,73,505 equity shares. The anchor portion of the offer was open on Tuesday, July 13, 2021.

The anchor investors include names like Tiger Global Investment Fund, Fidelity, JPMorgan, Morgan Stanley, Blackrock, T Rowe Price, Canada Pension Plan Investment Board, Government of Singapore, SBI Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Motilal Oswal AMC, UTI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Goldman Sachs India, Abu Dhabi Investment Authority, Franklin Templeton, HSBC Asset Management (India) among others.