Zomato Limited which had tapped the capital markets with its fresh issue of Rs 9,000 crs and an offer for sale of Rs 375 crs, in a price band of Rs 72-76, was subscribed 40.38 times. The issue had opened on Wednesday the 14th of July and closed on Friday the 16th of July.

The companies share listed on the bourses on Friday and had a great day. Shares debuted at Rs 115 on BSE, at which price 42,00,118 shares were traded. On NSE, the listing price was Rs 116 at which price 19,41,45,263 shares were traded.

Earlier the company had allotted 55,21,73,505 equity shares at Rs 76 to 100 anchor investors comprising of 186 entities. This makes this the largest allocation in terms of number of entities in recallable history.

The QIB portion was subscribed 54.71 times, HNI portion was subscribed 34.80 times, Retail portion was subscribed 7.87 times and Employee portion remained undersubscribed at 0.62 times. Retail portion saw 32.29 lac applications and on the basis of lots, the issue was subscribed 5.13 times. This means that the average application was for 1.53 lots.

The unconfirmed reports about the anchor portion being subscribed or receiving bids of 35-37 times the anchor size was a mere publicity stunt and was widely circulated by a leading newspaper chain which has been nicknamed by the market as Zomato Times. The actual subscription by anchor investors was by 186 entities and they applied for 1.04 times the IPO size. This fake news is certainly harmful to the market and unwarranted cause for concern.

The HNI book saw fund raising of Rs 48,686 crs and the overall issue garnered Rs 2.13 lac crs including the anchor portion.

Coming to the listing proper, the high on BSE was Rs 138, the low was Rs 114 and the closing price was Rs 125.85. The gain was Rs 49.85, or 65.59%. On NSE, the high was Rs 138.90, low was Rs 115 and the close was Rs 126, a gain of Rs 50 or 65.79%. The traded volume on the two exchanges combined was 74 cr shares which was 60% of the IPO size of 123.35 cr shares. It was 1.09 times of the non-anchor portion of 68.13 cr shares. Delivery volume was 44.30 cr shares which was 59.86% of the traded volume. It was 35.92% of the IPO size and 65.02% of the non-anchor portion. Considering that HNI portion is 15% and retail a mere 10% in this issue, the two combined still total just 25%. It means QIB’s have also sold on day one.

The weighted average of the day’s trade was Rs 127.42 on BSE and Rs 124.12 on NSE. There was selling pressure on the stock in the last hour of trading, and one got a sense that great efforts are being made to close the price at a level where the market cap of the stock closes at a magical figure of Rs 1 lac crs. In spite of all the effort and last-minute price support, they failed. The closing price of Rs 125.85 resulted in a market cap of Rs 98,731.59 crs. This also is beyond expectation and I am sure has beaten the expectations of almost all people. For the record it may be stated that the Free float market cap is Rs 8,885.54 crs. This implies that with an anchor allocation of Rs 4,200 crs, the number of shares with AIF’s that are without lock-in and can be sold is about Rs 7,200 crs at current market rates.

There were no institutional trades reported either on the buy or sell side in Zomato Limited.

While the performance has been spectacular, the sustainability is questionable and debatable.