Zomato’s shares debuted on the stock exchanges in the previous week, with a profit of approximately 70 percent in the early trade against the listing value of Rs 76 per share each.
Trading was active, with shares opening at Rs 116 per share on the NSE and increased rapidly to a level of Rs 133. The market capitalization crossed Rs 1 lakh crore, traded with over 40 crore shares.
The opening buzz of Zomato’s public listing was a short, low-key affair and done remotely by its “riders,” or delivery personnel, given things of the COVID-19 pandemic.
In the pre-open time, Zomato shares settled at Rs 116 per share. The stock markets began in the green territory, with the BSE Sensex increasing by over 100 points. In comparison, the Nifty was 50 by 37 points though it slipped it a touch before prevailing stable.
The Much-awaited IPO for Zomato
The much-awaited Rs 9,375 crore initial public offering (IPO) listing of Zomato, which incorporates the Rs 375 crore secondary share sale by Info Edge, received strong support from investors oversubscribed by around 44 times. It has priced between Rs 72-76 per share.
The grey market premium for shares of Zomato was hovering around a 15-20 percent gain. Therefore the expectation was that it might list at Rs 100 per share. The company had set a post-issue evaluation of Rs 64,365 crore.
Before the IPO listing, Zomato raised Rs 4,197 crore from anchor investors, including marquee names like Tiger Global, New World Fund, Fidelity, and domestic mutual funds like HDFC, SBI, and Axis.
By the end of March 31, 2021, total orders of Zomato were at 239 million, with a total gross order price of Rs 9,500 crore.
In financial year 21, the startup’s revenue slipped over 20 percent to Rs 2,118.4 crore. However, it managed to chop losses, recording Rs 816.4 crore, compared to Rs 2,385.6 crore the previous year.