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Zomato IPO: When will it open, price band, allotment status and other key questions answered –

Zomato IPO: Key questions answered

Food delivery giant Zomato’s Rs 9,375-crore initial public offering (IPO) will open on July 14. This is being touted as the second-biggest IPO since SBI Cards and Payment Services’ Rs 10,341-crore issue in March 2020, just before the COVID-19 pandemic struck.

The Gurugram-based company will be among the first from a long list of Indian unicorn startups to launch an IPO. It will also be the first among Indian online food aggregators. The public offer is expected to take Zomato’s valuation to $9 billion.

Read | Zomato IPO to open this week: 10 key things to know about the issue and the company

When will the Zomato IPO open for subscriptions?

The IPO will open for subscription on July 14 (Wednesday).

When is the Zomato IPO closing?

The initial public offering will close for subscriptions on July 16 (Friday).

What are the objectives of the issue?

The restaurant aggregator has said it will utilise the net proceeds from the fresh issue for funding organic and inorganic growth initiatives (Rs 6,750 crore), and general corporate purposes.

What is the issue size?

The issue comprises fresh issuance of shares, aggregating up to Rs 9,000 crore. Additionally, there’s an offer for sale of up to Rs 375 crore by current shareholders.

What is the IPO’s price band?

The price band for this IPO is fixed at Rs 72-76.

What is the lot size?

Investors can subscribe to this IPO by betting for a lot of 195 shares or its multiples. Retail investors will be able to bid for a maximum of 13 lots at the higher end of the price band.

What is the size of quota reserved for retail investors?

The quota for retail investors has been fixed at 10 percent of the net offer. Qualified institutional buyer (QIB) quota is fixed at 75 percent and that of non-institutional investors (NIIs) has been fixed at 15 percent.

What about the employee quota?

As many as 65 lakh equity shares will be offered to employees who are eligible.

When will the allotment be finalised?

It is expected that the basis of allotment will be finalised by July 22. Refunds are likely to be initialised by July 23. Credit of shares to demat accounts is likely to happen by July 26.

When will Zomato get listed?

The food delivery giant is likely to list by July 27.

What is the grey market indicating?

There seems to be a strong demand from investors as shares were available at a premium of 26 percent in the grey market ahead of the IPO opening.Zomato shares traded at a premium of Rs 16-20, i.e. a 21-26 percent over upper end of the IPO price band of Rs 76, data available on the IPO Watch and IPO Central showed. Thus, the traded price was at Rs 92-96 per share in the grey market.

Who are the lead book running managers to this IPO?

Kotak Mahindra Capital Company, Morgan Stanley India Company and Credit Suisse Securities (India) are the global co-ordinators and book running lead managers to the issue. BofA Securities India and Citigroup Global Markets India are the book running lead managers to the offer.