The allocation of shares in Zomato’s massive IPO has been finalised. The meal delivery startup’s $9,400 crore initial public offer – India’s largest since March 2020 – was subscribed 38 times. Retail investors bid 7.45 times, qualified institutional buyers (QIBs) over 54 times, and non-institutional investors 35 times the quota allotted to them. The registrant of the Zomato IPO is Link Intime India Private Ltd, and investors may verify their share allocation on the company’s website.

Investors may now monitor the progress of their Zomato share application on the BSE website. Zomato IPO shares are expected to be offered on July 27th, according to brokerages.

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Zomato has raised Rs 4,196 crore from 186 anchor investors ahead of the IPO. According to market watchers, Zomato shares are trading at a premium of GMP 23 on the grey market.

The Zomato IPO included a 9,000 crore fresh offering of equity shares and a 375 crore offer-for-sale (OFS) by existing investor Info Edge (India), the parent company of Naukri.com.

In a note, LKP Securities, which had suggested that investors subscribe to the IPO, said: “Zomato is a growth oriented company focused on increasing its presence further into every part of the country. FY21 revenues fell by 24% to Rs1,993 crore, the number of orders declined by 41% to 239 million, but order value increased by 43% YoY to almost ₹400. Increase in frequency and number of food delivery by customers due to lockdowns along with lower customer discounts and fees to delivery partners led to contraction in losses in FY21 to 490 crore (excluding exceptional item) from ₹2,251 crore in FY20. Zomato’s unit economic cost has seen an improvement in last four quarters which increased to ₹20.5 in FY21 from loss of ₹30.5 in FY20.”

Zomato is being “listed at a revenue multiple of 27x its FY21 revenues whereas global peers trade in the range of 3-19x price to sales. However, the opportunity and scope of further growth is significant for Zomato,” the brokerage added.

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Axis Securities’ Chief Investment Officer, Naveen Kulkarni, said: “We believe a better service mix and a robust operating model will accelerate the revenue growth momentum. With growth expected to pick up in the forthcoming years after a pandemic, and the rising use of online platform, we expect the company to breakeven at operating levels in FY22, making the IPO more lucrative.”

The net proceeds from the new offer would be used to finance organic and inorganic growth efforts (worth Rs 6,750 crore) as well as general company objectives, according to Zomato.

Meanwhile, competitor meal delivery startup Swiggy announced the closing of a $1.25 billion fundraising round backed by SoftBank Vision Fund 2 and Prosus, two days before Zomato’s IPO.