Ashneer Grover, the former co-founder and managing director of BharatPe is somehow always in the news. Whether it is for his controversial statements, his stint at the Shark Tank show that led to him becoming meme fodder, his very dramatic and soap-opera style tussle with his former company or recently for his just released book.
In the memoir called ‘Doglapan’ a word that went viral online because of how frequently Grover used it on the Shark Tank show, he talks about various things from his life as an entrepreneur and running a start-up in India.
Among one of the things he wrote about was how he made over Rs. 2.25 crores within just 8 minutes of the Zomato IPO opening in July last year.
How Did Ashneer Grover Make Money With Zomato IPO?
Ashneer Grover’s just released book ‘Doglapan: The Hard Truth about Life and Start-Ups’, refers to his experience with the Zomato IPO and he writes of how he made crores within minutes of it launching.
He said that “My RMs (relationship managers), based on grey-market premiums, were expecting the Zomato share to list between ₹85-90, as against an issue price of ₹76. I, however, was certain that it would do far better. When the share opened on the listing day at ₹116 per share, I mandated them to sell all my shares.”
Read More: Can IPOs Make You Rich?
It seems that Grover also wanted to make up for his loss after the much publicised miss with the Nykaa IPO and the resulting clash with the Kotak Group that went viral.
He further wrote that “It was, however, a case of simple leverage—IPO financing. While I invested Rs 5 crore from my pocket, Kotak Wealth got me financing for Rs 95 crore at an interest rate of 10 per cent annualized for a week (the period for which IPO funds get blocked). This cost of Rs 20 lakh as interest was an additional cost for acquiring the shares.”
It seemed to be a good investment since the Zomato IPO was oversubscribed more than 30 times increasing its price to Rs. 115 from its initial issue price of Rs. 76 per share when the Zomato stock made its debut at the exchanges on 23 July 2021.
On seeing this Grover told his wealth managers to sell all his shares writing “By the time the trade got executed, I got a selling price of Rs 136 per share. With my landing cost after interest being between Rs 82–85, I ended up making over Rs 2.25 crore.”
Image Credits: Google Images
Feature Image designed by Saudamini Seth
Sources: Moneycontrol, The Economic Times, Business Insider
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