Twelve-year-old food delivery firm Zomato got an overwhelming response from anchor investors on Tuesday.
It raised Rs 4,196.52 crore ($562.3 million) from 186 anchor investors by allotting a little over 55.2 crore shares at the upper end of the price band, according to a stock exchange filing.
Anchor investors, also known as cornerstone investors, accept a one-month lock-in for a sizeable allocation of shares. Their participation highlights investors’ confidence in an IPO and sets a benchmark for the investor community at large.
US-based asset manager Capital Group emerged as the largest anchor that subscribed to 3.91% of the aggregate portion for Rs 164 crore.
Financial investors Tiger Global Management, Bailley Glifford Pacific Fund, and Morgan Stanley Investment Funds invested over Rs 100 crore each.
Over a third of the total anchor investor shares were subscribed to by as many as 19 domestic asset managers including SBI, Axis, Aditya Birla, Kotak, Nippon Life, Mirae, UTI, Motilal Oswal, Franklin India, HDFC, ICICI, IIFL, IDFC, Sundaram, Tata, Edelweiss, HSBC, and Principal.
Mutual funds invested through a total of 74 schemes and fetched Zomato close to Rs 1,400 crore.
The IPO opens today and will close two days later on Friday. The company is seeking a valuation of over Rs 60,000 crore ($8.6 billion) through the share sale.
Canada Pension Plan Investment Board (CPPIB) and government of Singapore subscribed to 2.99% and 2.3% of the anchor portion and invested Rs 125.3 crore and Rs 96.61 crore, respectively. Abu Dhabi Investment Authority also participated.
Morgan Stanley Asia (Singapore) PTE – ODI invested Rs 143.82 crore in the issue. Goldman Sachs, BNP Paribas, Fidelity Investments and Societe Generale also took part in the issue.
Private equity firms including Steadview Capital, T Rowe Price, and Blackrock also invested.
The total size of the IPO is about Rs 9,375 crore which includes a fresh share sale worth Rs 9,000 crore. Early investor Info Edge will sell shares worth Rs 375 crore in the offering.