Zomato m-cap beats many biggies in debut trade
Online food delivery firm Zomato made a historic stock market debut with its market capitalisation surging above Rs 1 lakh crore at one point of time higher than several Nifty50 and Sensex companies.
Zomato shares listed at Rs 115 as against the public issue price of Rs 76 per equity share of Re 1 face value, commanding 51.3 per cent premium and shot up further to Rs 138 in intra-day trade gaining 81 per cent.
As its market cap soared to Rs 98,731.59 crore at market close with shares closing at Rs 125.85 on the BSE up 65.59 per cent, it has left behind many old economy stocks in valuation. Its market cap is now higher than Tata Motors (Rs 98,164.90 crore), IndusInd Bank (Rs 76,513.20 crore) and Hero MotoCorp (Rs 56,666..41 crore).
Zomato’s surge on debut turned founder Deepinder Goyal into a poster boy for India's fledgling startup scene, pushing his fortune close to the $1 billion mark.
Goyal is worth $650 million based on his current 4.7 per cent stake in Zomato, according to the Bloomberg Billionaires Index. He also owns more than 368 million options that vest over the next six years, which if exercised would almost double his stake in the company.
The group of ultra rich startup entrepreneurs in the country is small. Those topping $1 billion include Byju Raveendran of Byju's, Vijay Shekhar Sharma of Paytm, and Sachin Bansal and Binny Bansal, co-founders of Flipkart.
The IPO is a triumph for not just Goyal but also scores of Indian startup entrepreneurs aspiring for influence and wealth.
"Today is a big day for us," Goyal said in a blog posting. "But we couldn't have gotten here without the incredible efforts of India's entire internet ecosystem."