Investors are eagerly waiting India’s first startup unicorn listing, whose share allotment is likely to be finalised by Thursday. The stock market will be shut on Wednesday on account of Bakri Id.
Last heard, unlisted shares of Zomato were commanding a Rs 16.75-17.25 premium in the grey market up from Rs 10 they was commanding just ahead of the issue. Most brokerages expect the issue to deliver solid listing gains, though many have a mixed outlook on the stock’s performance over the medium term, as the issue was deemed overpriced based on several valuation parameters.
The Rs 9,375 crore issue, which was sold in the Rs 72-Rs 76 price band, received strong investor response, with total subscriptions topping 38 times. The quota reserved for qualified institutional buyers (QIBs) was subscribed 54.71 times, while those reserved for non-institutional investors (NIIs) 34.80 times. The retail quota was subscribed 7.87 times.
At the issue price, the company will command a market capitalisation of about Rs 64,500 crore., which will be higher than the combined market value of India’s half a dozen listed quick-service restaurant chains, such as the franchisees of Domino’s, McDonald’s and Burger King, among others.
Indian has 20 listed hospitality companies with an aggregate market capitalisation of about Rs 45,000 crore.
Investors, who have bid for the issue, can check the share allotment status of Zomato on the Bombay Stock Exchange (BSE) website:
- Visit https://www.bseindia.com/investors/appli_check.aspx
- Under the issue type, click Equity
- Under the issue name, select Zomato Limited in the dropbox
- Write the application number
- Add the PAN card ID
- Click on ‘I am not a Robot and hit submit.
One can also check the share allotment status on the online portal of Link Intime India Private Limited (https://linkintime.co.in/MIPO/Ipoallotment.html), the registrar to the issue. The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications, and carries out the allotment process as per the prospectus.
The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatch, and uploading of refunds, and attending to all investor-related queries after the issue is completed.
- Go to the web portal of Link Intime India Private Limited
- Select the IPO in dropbox whose name will be populated only if the allotment is finalised
- You may be required to select either one of the three modes: Application number, Client ID or PAN ID
- In application type, select between ASBA and non-ASBA
- Enter the details of the mode you selected in Step 2
- For security purposes, fill the captcha accurately
- Hit submit.
Bidders who could not get share allotment in the IPO may see the initialisation of refunds on Friday. Others, who would be allotted shares may see the credit of shares to their demat accounts by Monday next week. The stock is likely to be listed by next Tuesday.
In its IPO note, Prabhudas Lilladher said it believes Zomato would be a loss-making company for the next 2-3 years, but expects the premium valuations to sustain given that online business in India is at the cusp of fast growth in coming years.
KR Choksey was not comfortable with the ‘sky-high’ valuation of the IPO but had recommended ‘subscribe’ on the issue for listing gains only.’ Zomato narrowed its losses to Rs 816.42 crore in FY21 from Rs 2,386 crore in FY20. It reported a loss of Rs 1,010 crore in FY19. Zomato in its RHP said it expects costs to increase over time and “our losses will continue, given significant investments expected towards growing our business.”