Indian tech is on a roll, and Zomato is front and center. With an upcoming debut on the National Stock Exchange of India (NSE), this DoorDash-equivalent shows great potential as investor interest soars above the status quo.
With reserved shares on the rise, when is the Zomato IPO share allotment date?
Investors reserve more than 38 times the set Zomato shares initially offered
Initially, Zomato put up a certain number of shares (71.92 crore in the indian numbering system, or 719 million shares) for investors to subscribe to. This includes qualified institutional buyers, non-institutional investors, retail individual investors, and employees.
These buyers were so interested in Zomato stock that the IPO is set to launch with 38.25 times the number of shares that the company originally projected. Meanwhile, 62 percent of the employees bought in ahead of time.
That's a lot of institutional interest, and it has led to a spark for domestic and international investors interested in Indian tech.
Zomato's IPO interest has led to more than $1 billion in fundraising.
With so many shares subscribed to, Zomato has already secured fundraising worth 94 billion rupees, or $1.26 billion.
Zomato's institutional investors include Morgan Stanley, Tiger Global, and Fidelity Investments.
Upon the company's opening of stock subscription, it became the first unicorn (a startup with a $1 billion+ valuation) in India to make a public market debut.
Zomato fulfilled 240 million orders last year
For the year ending March 31, Zomato fulfilled 239 million total orders and maintained 32 million active monthly users. The company's pool of about 400,000 restaurant partnerships and 170,000 delivery drivers during that time shows its strong reach.
For the sake of Zomato investors, let's hope India doesn't restructure non-employee worker regulations like the U.K. did during the Deliveroo IPO time period. It could screw up the company's entire business model and send shares spiraling in a snap. Right now, it's mainly a point of contention in the U.K., U.S., and various parts of Europe.
Zomato is going public alongside the potentially biggest IPO in India's history.
Indian payments app Paytm announced that it's going public. Currently, the company expects to raise $2.2 billion in the deal. This would make it the largest Indian IPO in history and could show a serious shift in global interest for the Indian tech sector.
While Zomato and Paytm aren't necessarily competitors, there's some competition between the two public stocks, especially as global investors dip their toes into this growing marketplace slowly and steadily.
Zomato shares are set to start trading on July 27
The Securities and Exchange Board of India (SEBI) requires that every individual who has applied for share allotment receives at least one. That means everyone who subscribed to Zomato shares will, indeed, get something—although it might not be as much as individual retail investors would like.
The company is set to allot the shares on July 27, after which investors will be able to execute trades.