Zomato share crashes 14% to hit a new all-time low as lock-in period ends
Zomato's one-year lock-in period for promoters, shareholders and employees expired today
Zomato shares were listed on the BSE and NSE on July 23, 2021
The company's shares rose to a lifetime high of Rs 169 a share in November 2021
Zomato's share price fell more than 14% to Rs 46 in early morning trades today, as the one-year lock-in period for promoters, shareholders, employees, and others expired today.
The food chain platform's entire paid-up capital of the one-year overhang is roughly 78%, and market analysts predicted that Zomato shares will be under pressure this week. Zomato Limited's public offering was placed on the BSE and NSE on July 23, 2021.
Zomato shares began down in early morning trades on Monday, breaching its all-time low of Rs 50.05 per share, before falling to a new low of Rs 46 within minutes of the stock market's opening bell today.
"Shares of Zomato were listed on Indian bourses on 23rd July 2021, which mean one-year lock-in for promoters, company employees, founders of the company, etc. has ended today. As these shareholders constitute around 78 per cent of the total paid-up capital of Zomato Limited, shares of this food service are under sell-off pressure in the early morning session today," said Anuj Gupta, Vice President — Research at IIFL Securities.
The company's consolidated net loss for the quarter ended March 2022 widened to Rs 359.7 crore compared to Rs 134.2 crore in the corresponding quarter last year. Revenue from operations came in at Rs 1,211.8 crore, up 75.01 per cent compared to Rs 692.4 crore in the same quarter last year.
Zomato shares were listed on the BSE and NSE on July 23, 2021, at a significant premium of more than 51%. Zomato shares rose to a lifetime high of Rs 169 a share in November 2021, surpassing Rs 1 trillion in market valuations during its post-listing boom.