India’s leading online food aggregator, Zomato, has raised the third-highest amount in the country’s stock market history after getting subscribed 38.25 times. The company’s initial public offering received a strong response across different investor categories.
Market observers believed that the company’s shares would get listed on bonuses due to improved sentiments in the primary and broader market.
So, let’s find out how Zomato’s debut on the stock exchanges turned out to be.
Zomato IPO Share Listing – BSE and NSE
Zomato settled its IPO share allotment on 22 July, Thursday. As it turns out, shares of the unicorn start-up got listed at Rs.115 per unit, making a strong debut on BSE today.
Thus, its stock price increased by approximately 51% or Rs. 39 from its issue price of Rs.76.
Accordingly, the market capitalisation of the online food delivery and restaurant discovery platform stood at roughly Rs. 90,220 crores.
Soon after the stock started trading, the company’s share price jumped to Rs. 138, almost doubling investors’ money before hitting 20% upper circuit.
On NSE, Zomato stock price rose by Rs. 40 to Rs. 116 per share, representing 53% gains.
Concerning traded volumes, 56,50,60,083 shares changed hands on NSE as of 11:13 am on Friday.
At the same time, 37,343,137 shares of Zomato were bought and sold on the BSE. At the time of writing, the stock traded at Rs. 123 per share.
Should One Consider Investing in Zomato Stock?
Here are some key highlights regarding Zomato that individuals might want to consider:
- Zomato offers a platform that links consumers with restaurants. This company operates in more than 500 cities and has close to 3,90,000 restaurant listings.
- Per reports, it had 3.21 crore monthly active users on average.
- The online food aggregator has a presence in 23 countries globally, including the USA and Australia.
Besides these aspects, investors need to take into account the financials of the company as well. The company has witnessed significant revenue growth, recording 62% yearly growth rate from FY2018 to FY2021. That said, investors must note that Zomato continues to report losses to date.
Strengths of Zomato
Here are a few strengths of Zomato:
- This company has an asset-less business model that ensures high financial leverage.
- Zomato’s platform is extremely lucid, which is convenient for users having different financial or educational backgrounds.
- Zomato has a strong marketing strategy both online and offline, which has been crucial in relation to its customer engagement.
The Final Word
Zomato’s IPO will usher in more listings of companies that leverage digital platforms. PolicyBazaar and MobiKwik are two such examples that will be following in the footsteps of India’s leading online food delivery and discovery platform. Interested individuals can check details of upcoming IPOs from here.
Ineligible investors who missed out on Zomato share allotment can invest in shares of the company via Angel One. That said, before allocating funds to this stock, one must consider various aspects like the strengths, weaknesses, and financials of the company.
Frequently Asked Questions
- How can one buy Zomato shares?
Investors can invest in Zomato shares by opening a DEMAT account with Angel One.
- What was the objective of Zomato’s IPO?
The company will use the funds raised from its issue to finance organic and inorganic growth purposes besides fulfilling general corporate purposes.
- Who are some of the investors of Zomato?
Mirae, Steadview, Ant Financial, and Info Edge are some of the investors of Zomato.
- What is the total amount of funds raised by Zomato to date?
As of today, Zomato has raised funds worth $2.1 billion over 21 funding rounds.