Zomato IPO sees huge gains on the listing day

Zomato, a leading food delivery company, went public on July 23 with a listing premium of over 50%, making it the 13th IPO since 2020, with a listing growth rate of over 50%. The opening price of shares on the NSE was 116 rupees, which was 52.63% higher than the 76 rupees last issued. The Bombay Stock Exchange traded at 115 rupees, an increase of 51.32%.

At 12:30 in the afternoon, Zomato hit a daily high of 138 rupees, bringing its market value to more than 100,000 crore rupees, making it 46th on the list of the 50 most valuable accountants. The other companies in the range of 100,00-200,000 crore rupees include IOC, Tata Motors, Shree Cements, Dabur, Tech Mahindra, and Bajaj Auto.

This startup temporarily disrupted the market value of some big names in Nifty50, such as the IOC and Tata Motors, but fell in early trading. Initially, Zomato outperformed Info Edge, which owns a 15% stake in Unicorn. “One of the most anticipated and discussed IPOs in recent years. Zomato has a market value of over 1 lakh crore rupees and is backed by Sanjeev Bhikchandani and led by Info Edge India Group. This IPO made a great entry, with a 73% increase in the shares. ” Kapil Goenka said.

Although the evaluation is valuable, the list meets analyst expectations. As one of the earliest listed companies in the food distribution field in India, Zomato is a good start in the field of technology entrepreneurship.

The main problem for investors now is what should they do: Book profit, if they got the allotment. Is it worth buying in the secondary market for those who are not in distributors? Experts believe that those who received allotments can look at longer investments, and those who were unlucky can buy stocks if they fall for longer times.

Zomato will use net proceeds from new products to fund organic and inorganic growth programs. Despite the short-term problems, Zomato has great potential. Some experts believe that it may become part of Nifty50 due to its high free float market value.

Zomato has steadily increased its market share in the past four years, from October 2020 to March 2021 becoming India’s category leader in gross order value (GOV).

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By Vil Joe

Vil Joe, co-founder of the website with three years of experience in the newspaper industry. Apart from writing and editing articles on Sports and Technology at Breaking News 4 You, he also contributes to the other news portals.

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