Is zomato oversubscribed?

Food delivery firm Zomato launched its much-awaited initial public offering (IPO) on Wednesday, and it has been oversubscribed by 38 times. The company had allotted 55.22 crore equity shares to these anchor investors for ₹76 per equity shares.

Why was zomato IPO oversubscribed?

Zomato, which will be the first Indian unicorn startup to get listed, is expected to make its debut in the markets on July 27. Jimeet Modi of brokerage firm Samco Securities said that the “insane demand” for the Zomato IPO was because retail investors were looking to make listing gains, Reuters reported.

How much oversubscribed is zomato?

NEW DELHI: Zomato’s initial public offer (IPO) was oversubscribed 10.7 times on the third and last day of the sale with institutional buyers pouring into garb shares of the food delivery platform. The offer received bids for 770.07 crore equity shares against an IPO size of 71.92 crore, stock exchange data showed.

Is it good if IPO is oversubscribed?

An oversubscribed IPO indicates that investors are eager to buy the company’s shares, leading to a higher price and/or more shares offered for sale.

Which is the highest subscribed IPO in India?

MUMBAI: The Rs 600-crore initial public offering (IPO) for , a data and analytics consulting company, was subscribed 339 times, making it the most subscribed IPO ever in India. The previous best was 304 times subscription for Paras Defence’s IPO, which was listed on October 1.

Is zomato going for IPO?

The company filed to go public in April, saying it plans to use the proceeds to fund growth, which may include mergers or takeovers. Zomato is offering 1.23 billion shares, valuing the IPO at 93.75 billion rupees. Apart from food delivery, Zomato also lets users book tables and aggregates reviews for restaurants.

Is Zomato IPO a failure?

About 28 per cent of applications made by retail investors in Zomato’s initial public offering (IPO) through the unified payments interface (UPI) route were rejected, said investment bankers in the know.

Why is Zomato share oversubscribed?

What is Oversubscription? Oversubscription is a term used when the demand for a new public issue of shares is greater than the number of total shares offered. In this particular case, 38 times over-subscription means that the applications received for Zomato shares were 38 times more than the available shares on offer.

Can I get 2 lots in oversubscribed IPO?

Can I Get Multiple Lots in Oversubscribed IPO? No, a retail investor cannot get more than 1 lot in case of an oversubscribed. if an IPO is oversubscribed in the retail category, the shares are to be allotted in a manner that ensures that every retail bidder gets at least one minimum lot.

How IPO is allotted when oversubscribed?

In other words, the IPO has been oversubscribed by 20 times and the number of investors has also gone up by 10 times. In this scenario, all investors cannot be allocated at least one lot each as stipulated by the SEBI. Hence, the allocation will be based on a computerised lottery draw.