Zomato m-cap goes past ₹1 lakh crore after listing
NEW DELHI: Food delivery platform Zomato made a stellar debut on bourses on Friday, as its shares zoomed nearly 53% against the issue price of ₹76, and its market valuation has crossed the ₹1-lakh-crore mark.
The stock made its debut at ₹115, reflecting a huge gain of 51.31% against the issue price on the BSE. It then hit a high of ₹138, a jump of 81.57%.
At the NSE, it got listed at ₹116, registering a premium of 52.63%.
With the rally in the shares, the company’s market valuation went past the ₹1-lakh-crore mark on the BSE.
“Zomato, India’s leading online food delivery company, listed strongly on the exchanges today with a 53% premium. Such a stellar debut on the exchanges led to its market capitalisation crossing ₹1 lakh crore.
“Despite the large size of IPO at ₹9,375 crore and rich valuations, the company saw a healthy overall subscription of 38 times. There is a lot of fancy for such unique and first of its kind listing in the market. Zomato with first mover advantage is placed in a sweet spot as the online food delivery market is at the cusp of evolution,” said Sneha Poddar, research analyst, Broking & Distribution, Motilal Oswal Financial Services Ltd.
Zomato’s initial public offering (IPO) last week ended with a bumper 38 times subscription. The IPO of Zomato was India’s biggest initial share sale offer since March 2020.
The IPO had opened for subscription on July 14, in a price band of ₹72-76 per share. It closed on July 16.
The company, backed by Jack Ma’s Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.
The Zomato IPO comprised a fresh issue of equity shares worth ₹9,000 crore and an offer-for-sale (OFS) worth ₹375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com, according to the information provided in the draft red herring prospectus.
Zomato has said it will utilise the IPO proceeds for funding organic and inorganic growth initiatives and general corporate purposes.
Incorporated in 2008, Zomato is present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.
Zomato is leading several consumer-technology startups waiting to publicly trade shares in India, including the parent of digital-payments service Paytm, which has filed for the country’s biggest IPO. The listing caps a busy first half for domestic listings as local indexes hover near record highs, buoyed by cash injections by central banks worldwide.