Zomato lists with gain of over 70 percent; market cap crosses Rs 1 lakh crore

The shares of Zomato debuted on the stock exchanges on Friday, with a gain of around 70 percent in early trade against the listing price of Rs 76 per share.

Trading was brisk, with shares opening at Rs 116 per share on the National Stock Exchange (NSE) and rose rapidly to a level of Rs 133. The market capitalisation crossed Rs 1 lakh crore, with over 40 crore shares being traded.

The opening bell of Zomato’s public listing was a short, low-key affair and done remotely by it “riders”, or delivery personnel, given the situation of the COVID-19 pandemic.

In the pre-open period, the shares of Zomato settled at Rs 116 per share.

The stock markets opened in the green territory with the BSE Sensex rising by over 100 points while the Nifty 50 by 37 points though it slipped it a bit before remaining stable.

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Much-awaited IPO

The much-awaited Rs 9,375 crore initial public offering (IPO) of Zomato, which includes the Rs 375 crore secondary share sale by Info Edge, received overwhelming support from investors, being oversubscribed by around 44 times. It was priced between Rs 72-76 per share.

The grey market premium for Zomato shares was hovering around at 15-20 percent gain, and the expectation was that it would list at Rs 100 per share. The company had set a post-issue valuation of Rs 64,365 crore.

Prior to the IPO, Zomato raised Rs 4,197 crore from anchor investors, which include marquee names such as Tiger Global, New World Fund, Fidelity, and also domestic mutual funds such as HDFC, SBI, and Axis.

For the year ending March 31, 2021, Zomato’s total orders stood at 239 million with total gross order value of Rs 9,500 crore.

In FY21, the startup's revenue slipped over 20 percent to Rs 2,118.4 crore. But it managed to cut losses, recording Rs 816.4 crore, compared to Rs 2,385.6 crore last year.