Quick commerce platform Zepto is nearing a key milestone in its initial public offering (IPO) process, with the anchor book for its proposed Rs 11,000-crore public issue reportedly close to being fully subscribed. Norway’s sovereign wealth fund Norges and domestic financial services firm Motilal Oswal are expected to together account for 40–45% of the anchor book, according to people familiar with the development.
The anchor portion, which is typically allocated to institutional investors before an IPO opens for public subscription, is expected to comprise 30–45% of the total issue size. Besides Norges and Motilal Oswal, the offering has also attracted strong interest from domestic institutional investors, while three leading Indian bankers are said to be in advanced discussions to participate through their respective mutual funds.
Zepto is targeting a post-money valuation of approximately $5.1 billion for the IPO. However, some foreign institutional investors have reportedly indicated interest at a pre-money valuation of around $4.5 billion, implying a valuation lower than the startup’s previous peak private valuation of $7 billion. The revised expectations come as investors weigh the company’s path to profitability, cash burn and broader market conditions.
The company is expected to announce its IPO price band next week, with the public issue likely to follow shortly thereafter. Zepto has not officially commented on the reported anchor book participation or valuation.
FAQs
1. What is the size of Zepto’s IPO?
Zepto is planning to raise around ₹11,000 crore through its initial public offering.
2. Who are the key anchor investors in Zepto’s IPO?
Norway’s sovereign wealth fund Norges and Motilal Oswal are expected to together account for about 40–45% of the IPO’s anchor book.
3. What is Zepto’s expected IPO valuation?
The company is targeting a post-money valuation of around $5.1 billion, although some investors have indicated interest at a lower pre-money valuation.
4. What is an anchor book in an IPO?
An anchor book is the portion of an IPO allocated to institutional investors before the issue opens to the public. It helps gauge institutional demand and build confidence in the offering.
5. When will Zepto announce its IPO price band?
According to reports, Zepto is expected to announce its IPO price band next week, ahead of the public subscription opening.
