Nearly seven out of every 10 shares issued in Zomato Ltd.’s initial public offering saw a change in ownership on its market debut, suggesting that bulk of the investors booked profit taking advantage of the listing-day pop.
Shares of the restaurant discovery and food delivery company listed at Rs 115 apiece on the National Stock Exchange, a 51.3% premium to its issue price of Rs 76. It rose to an intraday high of Rs 138.9 (or nearly 83% above the IPO price). The stock pared some of the gains to end its first day of trading about 64.8% higher at Rs 125.85 on the BSE.
Zomato issued 122.7 crore shares in its initial public offering. Of these, ahead of the IPO it issued 55.21 crore shares to anchor investors, who are locked in for 30 days and couldn’t have traded on debut.
Total shares traded on both the National Stock Exchange and BSE at the end of the first trading day stood at 74.01 crore. That’s about 60.30% of the shares on offer in the IPO and 109.7% excluding the anchor portion. Meaning, many traders bought and sold shares during the day.
The total shares delivered stood at 44.30 crore, accounting for 59.9% of the shares traded on both the stock exchanges. Or 65.6% of the shares offered in the IPO, excluding the anchor allotment.
Shares worth Rs 9,313.7 crore were traded and worth Rs 5,575.6 crore were deliverable at the closing price of Rs 125.85 apiece on Friday.
Zomato IPO’s was subscribed more than 40 times. Institutional investors subscribed 54.7 times, while the portion set aside for their non-institutional counterparts was subscribed 34.8 times. The portion for retail investors saw demand of 7.9 times, while shares reserved for employees were undersubscribed.