Zomato shares listing likely tomorrow. GMP rises ahead of debut
Zomato IPO: Zomato Initial Public offering (IPO) is likely to list tomorrow at both NSE and BSE, a source close to Livemint informed. So, lucky bidders who got Zomato shares allotted today are advised to keep their focus on the Indian bourses when the market opens tomorrow as market observers are expecting strong listing of the public issue.
However, in the grey market, Zomato shares are available at a premium of ₹27 after the market close. In the morning ahead of shares allotment, Zomato IPO GMP today was ₹23. That means, Zomato IPO GMP today post-likely listing on tomorrow, has jumped from ₹23 to ₹27. In the morning, Zomato IPO’s GMP was already ₹2 up from its yesterday’s grey market premium of ₹21. According to the market observers, Zomato IPO GMP has been continuously rising from 14th July 2021 — Zomato IPO subscription opening date. They said that Zomato share price premium in the grey market has gone up from ₹10 on July 14th to ₹27 today i.e. 22 July 2021 — Zomato IPO allotment date (check allotment status here) logging 170 per cent rise in Zomato IPO grey market premium.
What rise in Zomato IPO GMP means?
According to market observers, this rise in the Zomato IPO GMP is an indication that market is getting positive to ultra positive about the upcoming public issue. They said that Zomato IPO GMP today at ₹23 means the market is expecting listing gain of ₹27 from the public offer when it will get listed at the Indian bourses. As per the Red Herring Prospectus (RHP) of the public offer, Zomato IPO price band is ₹72 to ₹76 that means the grey market is expecting Zomato IPO listing at around ₹103 — near 35 per cent higher from its issue price offer.
However, Avinash Gorakshkar, Head of Research at Profitmart Securities said that GMP is not a concrete data that should be relied so heavily. He said that it’s an unofficial short-term sentiment in regard to the public offer, which changes in one day as well. Gorakshkar went on to add that gery market involves even those people whose interests are at stakes in the public issue. So, sometimes it can be misleading too, and advised bidders and other market observers to rely on the balance sheet of the company as it gives clear picture about the financial health of the company.
Zomato IPO: Expected listing gain
Speaking on the expected listing gain from the Zomato IPO; Ashok Holani, Director at Holani Consultants Private Limited said, “As per the financials of the company, Zomato IPO listing gain can be expected around 25 per cent or roughly near ₹15 per Zomato shares on the listing date of the public issue.”
Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.
Zomato IPO: Check listing date, GMP and share allotment details
Online food delivery giant Zomato has finalised share allocation for its Rs 9,375 crore initial public offering (IPO), which received a strong response from investors. The IPO was subscribed over 38 times during July14-16.
The portion reserved for retail investors was subscribed 7.45 times while qualified institutional buyers (QIBs) subscribed over 50 times and non-institutional investors subscribed nearly 33 times the reserved portion.
The company also received a strong response from anchor investors and managed to raise Rs 4,197 crore at a price of Rs 76 share per piece on July 13.
HOW TO CHECK SHARE ALLOTMENT STATUS
Investors who have subscribed to the Zomato IPO can check share allotment status on Link Intime India Private Limited’s website. Link Intime is the registrar of Zomato’s public offering.
Investors can choose either PAN, application number, DP Client ID or account number/IFSC option to check the allotment status on Link Intime Private Ltd’s website.
Another option that investors have is to visit the Bombay Stock Exchange (BSE) website. Investors have to select ‘Equity’ in the ‘Issue Type’ field. Investors have to select the issue name (Zomato) from the dropdown menu.
Read | Zomato IPO share allotment today: How to check application status
This process has to be followed by entering the application number and the PAN. Investors have to then click on the search button to know the application/allotment status.
After the allotment, the company will start the process of refunds from tomorrow and the equity shares will be credited to the Demat accounts of eligible investors’ around July 26.
LISTING AND GMP DETAILS
Most brokerages have said the Zomato IPO shares are likely to be listed on the BSE and NSE on July 27.
As of now, Zomato’s unlisted shares is abuzz on the unofficial grey market. Multiple reports suggest that Zomato’s shares are trading on the grey market at Rs 22-25 per piece, indicating a premium of over 33 per cent.
Brokerages are optimistic that investors will be rewarded with handsome listing gains. However, there is some uncertainty around long-term gains due to concerns over Zomato’s expensive valuation.
Read | Zomato IPO: Check price band, opening date and other details
Zomato shares to list on exchanges tomorrow; grey market premium surges ahead of listing
Zomato shares to list on exchanges tomorrow; grey market premium surges ahead of listing
Key Highlights Online food service major’s share price in the grey market is available at a premium of Rs 23 today The tentative Zomato IPO listing date is July 27, 2021 Zomato has raised Rs 4,196 crore from several prominent institutional investors as part of an anchor book allocation
New Delhi: Online restaurant discovery and food delivery platform Zomato Ltd. will list its shares on Friday, July 23, a week after its initial public offering (IPO) clocked record-setting subscription numbers.
The allotment of Zomato IPO shares is happening today.
Last week, Zomato’s Rs 9,375 initial public offering (IPO) is subscribed 38.25 times so far on the third and final day of the issue, according to subscription data on the exchanges.
The retail investor portion was subscribed 7.45 times, while non-institutional investors put in bids for 32.96 times against their reserved portion. The portion set aside for employees was subscribed 62 percent and that of qualified institutional buyers (QIBs) subscribed 51.79 times.
Zomato IPO listing
The company is set to list its shares on the bourses on July 23 ahead of its scheduled date of July 27.
Zomato GMP surges ahead of listing
Online food service major’s share price in the grey market is available at a premium of Rs 23 today. That means, Zomato IPO GMP today is Rs 23, which is Rs 2 up from its yesterday’s Zomato IPO grey market premium of Rs 21.
According to the market observers, Zomato IPO GMP has been continuously rising since July 14, 2021. Zomato’s share prices have logged a 130% gain in the grey market and has gone up from Rs 10 on July 14th to Rs 23 today i.e. 22 July 2021.
The issue comprised an offer for sale of Rs 375 crore by the company’s early investor—Info Edge—and a fresh issue worth Rs 9,000 crore.
Zomato has raised Rs 4,196 crore from several prominent institutional investors as part of an anchor book allocation. It has allocated 552.17 million equity shares, to anchor investors, at a price of Rs 76 per share. The government of Singapore, BlackRock, Goldman Sachs, Abu Dhabi Investment Authority are some of the investors that participated in the anchor book.
What does the surge indicate?
Speaking of the massive GMP surge ahead of the Zomato IPO listing, Omkar Tanksale, Senior Research Analyst, Axis Securities, said: “A surge in the Zomato GMP ( Grey market Price) indicates that investors have greater confidence to gain traction in the business, in forthcoming periods. We also believe that a better service mix and a robust operating model will accelerate the revenue growth momentum, going forward. With growth expected to pick up in the coming years, after the pandemic, and rising use of online platforms, we expect the company to break even at the operating levels in FY22 and at PAT levels in FY23. This will enable them to maximize shareholder value.”
Zomato IPO: Expected listing gain
Speaking on the expected listing gain from the Zomato IPO; Gaurav Garg, Head of Research, CapitalVia said that “We believe that better market sentiments along with surprising earnings in Q1FY from Jubilant Foodworks has created a positive impact on this sector. I agree with what Grey Market Premium (GMP) is indicating. We expect IPO to open beyond Rs 100 which is quite a reasonable listing for this venture.”
How to check allotment status?
BSE website
To check share allotment status, visit the BSE website (https://www.bseindia.com/investors/appli_check.aspx). Select ‘equity’ as the issue type, and ‘Zomato Ltd’ as the issue name from the drop-down list, when it gets declared. Enter the application number and PAN (permanent account number). Click on ‘I am not a Robot’. In the last step, click on the search tab to view the status details.
Link Intime India website
Another way to check the allotment status in Zomato is through Link Intime website. To check status, select the company name as ‘Zomato – IPO’ from the drop-down list on the Link Intime India website, when it gets declared. Check box either PAN, Application Number or Depository/Client ID. Accordingly, enter the permanent account number or Application Number or Depository/Client ID in the box. Enter the given captcha in the provided space and click the submit button. This will display the number of shares that have been applied and allotted to the investor.