Zomato IPO: Shares trade at a 26% premium in grey market ahead of the issue

Zomato, a food delivery service, saw considerable interest from grey market investors, with shares offered at a premium of 26% in the grey market ahead of its first public offering (IPO). On July 14, it will begin accepting subscriptions for its Rs 9,375-crore initial public offering, the largest in the last sixteen months since the SBI Card IPO. The promotion will end on July 16th. The offer consists of a Rs 9,000 crore new issue and a Rs 375 crore offer for sale by Info Edge, a pure play internet firm. With an 18.68 percent investment in Zomato, Info Edge is the company’s largest stakeholder.

The IPO’s price range has been set at Rs 72-76 per share.

According to statistics from IPO Watch and IPO Central, Zomato shares traded at a premium of Rs 16-20 or a 21-26 percent premium over the upper end of the IPO price band of Rs 76. In the grey market, the traded price is Rs 92-96 per share .The grey market is an unauthorised venue for trading shares, where trading begins as soon as a price band is announced and continues until the shares are listed on bourses. This will be the 27th IPO of the year. GR Infraprojects and Clean Science & Technology are two recent examples. Employees can reserve up to 65 lakh equity shares as part of the Zomato offer.

This will be the 27th IPO of the year. GR Infraprojects and Clean Science & Technology are two recent examples. Employees can reserve up to 65 lakh equity shares as part of the Zomato offer. Customers, restaurant partners, and delivery partners are all connected through the company’s technological platform, which serves their various demands. Customers use the company’s platform to find and book restaurants, read and write customer reviews, see and upload images, order food delivery, book a table, and pay for meals when dining out In the year ended March 2021, it has 3,89,932 active restaurant listings in 525 cities across India. In the financial year ending March 2021, the meal delivery company reported a consolidated loss of Rs 816.43 crore, compared to a loss of Rs 2,385.6 crore the previous year. As a result of the impact of Co, revenue from operations declined to Rs 1,993.78 crore from Rs 2,604.73 crore during the same period.

The BSE and NSE are proposing to list equity shares. The issue’s worldwide co-coordinators and book running lead managers are Kotak Mahindra Capital Company, Morgan Stanley India Company, and Credit Suisse Securities (India). The offer’s book running lead managers are BofA Securities India and Citigroup Global Markets India.

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