Zomato IPO: Early investors see over 23x returns

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At a time when many are yet to embark upon their wealth creation journey by investing in Zomato, there are some who have already made their fortunes. With a valuation of Rs 59,623 crore at the upper end of the price band, investors who had backed the startup are set to net hefty returns on their investments, a VCCircle analysis shows.

Take the case of Info Edge that is set to partially exit its investments into the company cashing out Rs 375 crore from the initial public offer (IPO). According to business daily, Mint Info Edge is looking at a more than 23x return, or an annualized return of about 57%, on its total investment, going by the upper end of the price band.

Likewise, even Alibaba is also sitting at an annualized return of 58%. Alibaba, whose capital has multiplied 3.6 times during the period, had made a partial exit in March when D1 Capital Partners invested $136 million. D1 Capital investment into Zomato was timely as it grew 1.8 or generated 340% annualized returns in just six months. Even Tiger Global and Kora Investment will also see their investments almost double within a year reported the business daily.

Sequoia India and Vy Capital, which invested in the company in 2013 and 2014, respectively, would see close to 46% annualized returns. Temasek’s six-year investment is now valued at around Rs 4,000 crore, which is more than five times the capital it had ploughed in, stated the report.

The food delivery giants Rs 9,375-crore IPO is underway is fully subscribed on the first day of the offer. The public offer has received bids for 74,90,59,155 shares till 4.35 pm (IST) against 71,92,33,522 shares offered an oversubscription by 1.04 times. It has fixed a price band of Rs 72-76 for the ongoing initial share sale. Meanwhile, the quota reserved for retail investors was oversubscribed by over 3 times.

BlackRock, Tiger Global Investments Fund, Fidelity, New World Fund Inc, JP Morgan, Morgan Stanley Asia (Singapore) Pte-ODI, Goldman Sachs (Singapore) Pte -ODI, T Rowe, Canada Pension Plan Investment Board, Government of Singapore, Monetary Authority of Singapore and Abu Dhabi Investment Authority are among the anchor investors that pumped in Rs 4,196 crore into the issue. The issue will conclude on July 16.