Zomato has been on a bull run since its launch, hitting new highs in the last three trading sessions and nearly doubled its IPO price of 76 rupees per share. Shares in food supplier Zomato rose 20 per cent to Rs138m after doubling investors "money and settling at Rs126m at the end of trading. Shares of the company rose 5 percent in morning trading on the New York Stock Exchange (NSE) to a new all-time high of 147.80 rupees on Tuesday.
Zomato shares made a strong stock market debut and traded at a premium of 5.3 percent on NSE to 40 rupees and 76 rupees to 115 rupees on BSE (51.31 percent). The share price of Zomato, which entered the BSE and NSE during the day, reached a triple-digit rise to a whopping Rs 138.70.
With a 66 percent increase in the share price and a market capitalization of just over 98,000 kronor ($1.3 billion), Zomato exceeded expectations on the first day of its stock performance. The company joined the elite club of Indian companies to get a market capitalization of more than 1 crore when its shares reached 12,995 points at 10.01 am on the BSE. The company reached a market capitalization of Rs 10.8 lakh crore on the first day of BSE, its highest ever level, making it one of the few listed companies to join the Rs 1 lakh crore market capitalization group on its debut market.
Retail investors bid 745 times for 12.96 Core shares, giving them 9,000 Core when Zomato goes public. The company set the price at the upper end of the offer range of Rs 72-76 for 7,192 cron shares. Except for employee reserves, the company did not achieve 100 percent of the targeted subscriptions in the 62 percent and 6.5 percent categories.
On the NSE, the company's shares traded at a 52.63 per cent premium at Rs116. On the Bombay Stock Exchange, shares listed on the national stock exchange for 115 rupees, a premium of 51.32 percent over the issue price indicated by the company at the close of the IPO.
The price of the IPO was set at 76 rupees per share and the stock opened at 5.263 rupees, higher at 116 rupees on the Indian National Stock Exchange, which is valued at 910 billion rupees (12.2 billion dollars). Zomato shares were traded on the other India's Stock Exchange BSE, where they opened at 115 rupees per unit. Shares of the online shopping service rose 8.28 percent to 116 rupees in premarket trading, a 5.3 percent premium to the offer price of 76 rupees and 937.5 billion rupees at the IPO (Reuters).
Zomato shares rose 6.12% to 13,260 rupees after closing at 12,495 rupees on the New York Stock Exchange. Zomato shares opened at a 5.3% premium to the issue price of Rs 76. On the NSE, shares in Zomato jumped 53 per cent from 40 rupees to 116 rupees.
Zomato was at the forefront of India's biggest first-sale offer in March 2020. The highly anticipated IPO of Zomato was 38% subscribed by the end of the last day of the issue last week. Zomato's 9,375 crore offer was met with overwhelming response from the investor community.
The issue received bids of 275,125 shares for an IPO volume of 7,192 crore shares offered. A total of 32.18 lakh shares changed hands on the BSE, which corresponds to a turnover of 4,185 crore rupees. Zomato shares on BSE traded at 12.790 rupees, which was 5.190 rupees (68.29 percent) above the issue price of 7.6 rupees per share, as mentioned in the IPO.
Avinash Gorakshkar, head of research at Profit Mart Securities, said of the fundamental support for the Zomato share price rally: "Zomato grocery business is awakening, activation activity is accelerating and is expected to gain momentum. Analysts at UBS, quoted in a report in the Economic Times, pointed out that the Zomato share has the potential to reach 165 rupees per share over the next 12 months, according to the company. On that day there was active over-the-counter trading with Zomato Food Delivery and Restaurant Discovery Service Company, with 6.9 crore shares in transactions worth Rs 8,625 crore.
Food delivery start-up Zomato soared on Friday, 23 July when it debuted in India, reports Reuters and other news agencies. The company's share price rose more than 6 per cent today after it delivered its multi-billion pound order last week. The company also acquired a 15 percent stake in Grofers, an online grocery delivery company.
The company is the first Indian unicorn startup to go public. Tech giant Uber sold its Indian food delivery business in a share transaction to Zomato last year and took a share in the company.
Zomato has made history by becoming the first unicorn start-up to launch in India. The Zomato listing on the Indian stock exchange is a turning point for India's capital markets, as investors now own a large and scalable new-age technology company. Though it will not set the ball rolling for Zomato and similar modern technology companies, India is seen as an emerging hub for startups and unicorns, and many are poised for an IPO.