Zomato IPO was oversubscribed 4.8 times on the second day on Thursday as retail investors continued to pour in bids
Online food delivery platform Zomato’s Rs 9,375-crore initial public offering has seen a new set of investors coming into the capital market and there is a visible shift in consumer behavior, a senior official of Paytm Money said on Thursday.
Zomato IPO was oversubscribed 4.8 times on the second day on Thursday as retail investors continued to pour in bids. The company got bids for 344.76 crore shares against 71.92 crore shares on offer, stock exchange data showed. ‘Zomato IPO is the start of an important change in Indian capital markets as we see a very new set of investors and also the start-up ecosystem truly taking center stage.
‘More than the phenomenal response to the IPO, the visible shift in consumer behavior is a trend to acknowledge and closely watch,’ Paytm Money CEO Varun Sridhar said in a statement. Digital brokerage platform Paytm Money is offering booking of Zomato shares between July 14 and July 16. According to the insights shared by the platform, 27 percent of applicants were under the age of 25, while 60 percent were under 30. Historically, 55 percent of IPO applicants on the platform have been under the age of 30.
‘The average Zomato IPO investor was a year younger than applicants for previous IPOs on Paytm Money. Average investment in Zomato IPO on Day 1 was 20 percent higher than average investment in previous IPOs on Paytm Money,’ the brokerage firm said. Other than top cities like Delhi, Bengaluru, and Mumbai, Paytm Money saw first-time participation from smaller towns like Kodinar in Gujarat, Tuensang in Nagaland, and Rangapara in Assam. ‘Women contributed 10 percent of overall applications on Day 1 with a marginally higher ticket size compared to their male counterparts,’ the statement said.
Source: Business World