Zomato's stock soared over 53 per cent in its first day of trading on Friday, compared to its issue price of Rs 76. On the BSE, the stock debuted at Rs 115, representing a massive gain of 51.31 per cent above the issue price. It subsequently soared to a high of Rs 138, or an 81.57 per cent increase. It was floated for Rs 116 on the NSE, representing a 52.63 per cent premium.
"Zomato debuted in the Indian market with a strong listing gain of more than 50 per cent. Stock price has further jumped to 138 after a strong listing, making a debut to a club of one lac crore of market cap. This signifies a strong risk appetite for the new and next generation business models”, Axis Securities' Chief Investment Officer, Naveen Kulkarni, stated.
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The performance of today's IPO will send a good message to the Indian start-up ecosystem. Because the current market circumstances are favourable for the primary market, this trend is expected to continue in forthcoming IPOs.
Last week, Zomato's first public offering (IPO) received a record 38 times subscription. The initial IPO was launched on July 14 with a price range of Rs 72-76 per share. On July 16, it came to an end.
The firm, which is funded by Jack Ma's Ant Group Co, is the first of several Indian unicorn companies to go public. It is also the first online food aggregator in India. According to the information in draft red herring prospectus, the Zomato IPO included a fresh offering of equity shares worth Rs 9,000 crore and an offer-for-sale (OFS) worth Rs 375 crore by current investor Info Edge (India), which is the parent company of Naukri.com. Zomato was incorporated in 2008 and now has a presence in 525 cities across India, with 3,89,932 active restaurant listings, as well as 23 countries outside of India.
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