Indian start-up food delivery app Zomato shares soar 80% in market debut: What you need to know
India's leading food delivery company Zomato made a stellar debut on the Indian Stock Exchange today with an opening at Rupees 116 at NSE, a 52.63 premium to its final offer price of Rupees 76. The stock opened at Rupees 115 at BSE, which is 51.32% high.
Most of the experts were advising to be careful in this IPO, but their guess in the stock was wrong. Now the experts say that it may gain more in long run. Strong retail investors showed their interest in this start-up app which did very well during the pandemic in India.
The share price even went up to Rs.138 intraday after listing at Rs.116 (valued the company more than $12 billion)
Despite the large size of IPO at Rs.9375 crore and high valuations, Zomato fetched a healthy subscription of 38.25 times($46.3 billion) –the highest in the last 13 years among IPOs valued at more than Rupees 5000 crore each. The market capitalization of Zomato has crossed Rs. One lakh crore mark ($ l billion), racing ahead of IOC, BPCL and Shree Cement.
Incorporated in 2010, Zomato through its technology platform connect customers, restaurant partners and delivery partners, serving their multiple needs. It operates in 525 cities in India and partners with 390,000 restaurants. It faces competition from Swiggy and Amazon food delivery.
The company is the first digital start-up to launch shares in the Indian stock market whereas others like digital payment app Paytm, Oyo hotels and Ola are in queue to launch their shares in the coming months.