Shares rose 82.8 per cent after opening at Rs 115 in pre-open trade. This stock also hit the upper circuit during trading which was Rs 138. There was a 52.6 per cent premium over the initial public offering (IPO) price of Rs 76. Due to which the value of the company is about $ 12 billion (about Rs 89,450 crore). Zomato’s 9,375 crore IPO, backed by China’s Ant Group, is a first for a startup in India’s food delivery market, estimated at $4.2 billion (about Rs 31,280 crore) by research firm RedSeer.
The homegrown food aggregator, launched in 2008, operates in about 525 cities in India and has partnered with around 390,000 restaurants. The company’s offering last week garnered a bid of $46.3 billion (about Rs 3,45,220 crore) as it was oversubscribed more than 38 times, with even large institutional investors making major bets.
Danni Hewson, a financial analyst at AJ Bell, an investment platform in England, said, “Growth is of paramount importance here. Even though Zomato may not be profitable, it is growing rapidly and has to maintain that momentum. Enthusiastically deployed.” Zomato’s loss for the year ended March 31 was Rs 813 crore while revenue from operations fell marginally year-on-year to Rs 1,994 crore.