The Indian food delivery start-up Zomato made an impressive debut on the first day of being listed at the share markets. At the end of the first day of trading, Zomato’s share closed at ₹126 per share on the NSE. Its impressive as the price of the stock was up 66 per cent or Rs 50 from the IPO price of ₹76.
At the time of opening, Zomato shares hit 20 per cent upper circuit at ₹138, nearly doubling IPO investors money. At the time of the closing bell at the stock market, the total market capitalisation of the online food ordering platform stood at ₹98,211 crore, down from ₹1 lakh crore earlier in the day. On BSE, Zomato shares closed at ₹125.85 apiece which is 65 per cent or ₹49.86 higher than the IPO price.
(Source- Zomato’s Twitter handle)
In sheer traded volume terms, 451 lakh shares were traded in BSE, while 69.48 crore units were traded on NSE.
The homegrown food-tech unicorn’s ₹9,375-crore IPO was sold in a price band of ₹74-76 a share during 14-16 July and saw a subscription of over 38 times, receiving a robust response from all pockets of investors.
Zomato’s IPO is considered to be a big milestone for Indian startups as it is the first Indian internet unicorn to make its stock market debut.
This is also the largest to hit Dalal Street since SBI Cards and Payment Services’ ₹10,341-crore IPO in March 2020.
The amazing performance of Zomato’s shares reflected strong investor interest in the Indian internet-based start-ups that have done well during the pandemic.
On the occasion of Zomato’s debut in share markets, its founder Deepinder Goyal tweeted “The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best.”
Launched in 2008, Zomato operates in about 525 cities across India and partners with almost 390,000 restaurants for food delivery along with collating reviews and allowing customers to book restaurant tables.
The main competition of Zomato in India is from SoftBank-backed Swiggy and Amazon’s food delivery service and Uber Eats.