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Home >Markets >Stock Markets >Zomato shares make a stellar debut, market cap crosses 1 lakh crore

Shares of food-delivery platform Zomato made its stock market debut on Friday by listing at 116 per share on the National Stock Exchange (NSE), nearly 53% premium as against the issue price of 76 per share. Zomato share price surged as much as over 80% from its issue price, making an intra-day high of 138 per.

Its market capitalization had crossed the 1 lakh crore mark in early session, as per BSE, the value was at around 1,08,263 crore (as of 10:12 am). Zomato shares closed up 9% at 125.8 per share on the BSE on its first day.

''Given strong delivery network, high barriers to entry, expected turnaround and significant growth opportunities in tier-II and tier-III cities we continue to remain positive on the stock from a long term perspective. Post the stellar listing, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits,'' said Jyoti Roy of Angel Broking on the stock's outlook.

Ahead of the listing, Zomato IPO shares allotment was finalised on Thursday and its stock market debut was preponed given it was initially expected to list on July 27. The 9,400 crore initial public offering (IPO) of the food delivery startup, India's biggest since IPO March 2020, closed on 16 July with a subscription of over 38 times.

Retail investors bid 7.45 times while qualified institutional buyers or QIBs bid almost 54 times the quota reserved for them and non-institutional investors 35 times. Ahead of the IPO, it had mobilised 4,196 crore from 186 anchor investors. The 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.

Zomato founder and CEO Deepinder Goyal on Friday wrote a letter to shareholders ahead of its big debut in which he said, ''..The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best.''

Zomato has said it will utilise the net proceeds from the fresh issue for funding organic and inorganic growth initiatives and general corporate purposes. The home-grown food delivery platform, launched in 2008, operates in about 525 cities in India and has partnered with close to 390,000 restaurants. The company’s consolidated loss narrowed to 816 crore in FY21 as compared to loss of 2,385 crore in the previous year.


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