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Zomato enters the stock market with a bang

It almost hit the upper circuit (Rs 139.20)within the first 10 minutes of its listing but then witnessed profit booking. At around 10.20,  the stock was trading in the range of Rs 130-132. 

Published: 23rd July 2021 10:28 AM  |   Last Updated: 23rd July 2021 10:42 AM   |  A+A-

Zomato

Zomato (Photo | AFP)

By Express News Service

At expected, Zomato made a staggering debut on the stock exchanges. Shares of the foodtech firm opened at Rs 116 on the BSE, a premium of 53% over its issue price of Rs 76.  Its market capitalization crossed the Rs1 lakh crore mark in no time and stood at Rs 1,08,263.48 crore (as of 10:12 am).

It almost hit the upper circuit (Rs 139.20)within the first 10 minutes of its listing but then witnessed profit booking. At around 10.20,  the stock was trading in the range of Rs 130-132. 

Deepinder Goyal, Founder, Zomato in a note to shareholders, said, "Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem. Jio’s prolific growth has set all of us up for unprecedented scale. Flipkart, Amazon, Ola, Uber, Paytm – have also over the years, collectively laid the railroads that are enabling companies like ours to build the India of the future. We stand proudly and humbly on the shoulders of giants, and we thank everyone for giving us, and so many other startups, the opportunity to look ahead into the future."


He added that their 10+ year journey has not always been smooth and that they are going to relentlessly focus on 10 years out and beyond, and are not going to alter the course for short term profits at the cost of long term success of the company. 

"The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business," said Goyal. 

Zomato is making its stock market debut on Friday (July 23), much ahead of the initial schedule of July 27. With this, Zomato would become the first unicorn startup to find a spot on the bourses: the BSE as well the NSE. 

The food delivery major has fixed the IPO price at Rs 76 per share, which is at the upper end of the price range of Rs 72-76
 
Gaurav Garg, Head of Research, CapitalVia Global Research, said, "Long term investors should hold this issue for at least 2-3 years. However, investors who are looking for listing gains can go ahead and book their half of the holdings and can wait with the rest of the quantity for a slightly long term."

Zomato’s Rs 9375 crore IPO received a stellar response and was subscribed nearly 40 times and garnered bids worth over Rs 2 lakh crore


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