Zomato posts strong listing, opens at Rs 116 on NSE

Zomato,
one of India’s biggest food-tech unicorns, made a strong debut in the stock
market listing at Rs116 a piece on NSE and Rs115 a piece on BSE on Friday. The
company’s shares surged by 51.32% from its IPO price of Rs76, reports
Financial Times.

The
total market capitalisation of Zomato stood at Rs 90,219.57.

Zomato’s
initial public offer (IPO) worth Rs 9,375 crore was sold in a price band of
Rs74–76 a share from July 14–16.

The
public issue of one of India’s biggest food delivery and restaurant aggregation
companies saw a subscription of over 38 times and received a robust response
from all pockets of investors.

The
issue received bids for over 2,751 crore equity shares against the 71.92 crore
shares on offer.

Also Read | How to check your application status for Zomato IPO share allocation

Zomato’s
IPO is the first Indian internet unicorn to make it to the bourses. The
much-awaited public issue is the largest to hit the stock exchange since SBI
Cards and Payment Services launched its Rs10,341 crore IPO in March 2020.

Ahead
of the IPO launch, the anchor portion of the offer raked in over Rs4,196 crore
from 185 anchor investors.

Zomato’s core business offers
two segments — food delivery and dining out. In its draft red herring
prospectus (DRHP), Zomato said that it has consistently gained market share
over the last four years and leads the food delivery space in India.

Online
food orders with the company surged from 30.6 million in 2018 to 403.1 million
in 2020.

The food delivery platform, like other businesses, took a hit during the
pandemic and its income dropped to nearly half at Rs 1,367 crore. As of now,
Zomato is a loss-making company, something that had analysts worried ahead of
the IPO.

Founded
by Pankaj Chaddah and Deepinder Goyal in 2010, Zomato delivers food and enables
customers to aggregate restaurants. India’s homegrown unicorn currently serves in
24 countries.