July 24, 2021 5:06:05 am
Zomato on Friday made a strong start on the bourses, with its shares ending at Rs 125.85, a 65.59 per cent premium against its issue price of Rs 76 per share on the BSE. On the National Stock Exchange (NSE), the stock ended at Rs 125.30.
On the BSE, the stock listed at Rs 115, a 51 per cent rise over its issue price. It touched an intra-day high of Rs 138.
The counter saw a huge trading volume, with nearly 740 million equity shares changing hands cumulatively on the NSE and the BSE during the day. “The stellar debut of Zomato’s on the domestic bourse after attracting robust subscription is a testimony to the fact that investors are willing to bet big on new-age technology companies which have the characteristics of a disruptive business model. It is also a tribute to Indian entrepreneurship,” said S Ramesh, MD & CEO, Kotak Mahindra Capital Company.
Zomato’s market capitalisation hit the Rs 1 lakh crore-mark in intra-day trade. With Rs 98,732 crore market-cap, Zomato stood at 49th position in market-cap rankings on the BSE at the end of the day.
Sneha Poddar, research analyst, Broking & Distribution, Motilal Oswal Financial Services Ltd said, “Despite the large IPO size … the company saw a healthy overall subscription of 38 times. There is a lot of fancy for such a unique and first of its kind listing in the market.” According to Kapil Goenka, director at CM Goenka Stock Brokers, for the investors who are looking to gain from this IPO, Zomato might prove a gem. “Moreover, in the backdrop of the coronavirus pandemic, Zomato IPO and enthusiasm around this has undoubtedly boosted the investors’ confidence in the IPO market. However, we advise that successful allottees must book full profit and must wait for some time to buy again,” Goenka said.
Zomato’s IPO had received a strong response and generated bids worth Rs 2 lakh crore as it was subscribed over 38 times last week. The issue price was set at Rs 72-76 apiece. The IPO comprised a fresh issue of equity of as much as Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge (India).
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