Zomato’s Share Price Rises 66 Pc On Day One, With Market Cap At $13B
- ByStartupStory | July 24, 2021
Zomato’s share price rises 66 pc on day one, with market cap at $13B. The initial public offering (IPO) of Zomato was set at Rs 76 per share, and it opened at Rs 116 on the National Stock Exchange (NSE) on Friday. It touched a high of Rs 138, with the market capitalisation crossing Rs 1 lakh crore, before the share price closing at Rs 125.30. During the day, there was active trading in the Zomato counter, with 69 crore shares under transaction with a value of Rs 8,625 crore. The performance of Zomato scrip on listing day has beaten all the expectations as the grey market premium had put the share price in the range of Rs 80-100. The company, prior to the listing, had put a valuation of Rs 64,000 crore ($8.6 billion approximately) following the filing of its DRHP. To put it in perspective, the valuation enjoyed by Zomato has overtaken many of the established corporates in India like Mahindra & Mahindra, Godrej, Dr Reddy’s etc.
The successful listing of Zomato boosts the prospects of other companies from the Indian startup ecosystem who are getting ready to list on the Indian stock exchanges. Paytm has announced a Rs 16,600 crore public issue, while Policy Bazaar is seeking to raise Rs 6,500 crore. The stock market performance of Zomato comes in the backdrop of Zomato’s strong financial performance. For the year ending March 31, 2021, Zomato’s total orders stood at 239 million, with a total gross order value of Rs 9,500 crore. In FY21, the startup’s revenue slipped over 20 percent to Rs 2,118.4 crore. But it managed to cut losses, recording Rs 816.4 crore, compared to Rs 2,385.6 crore last year. As of March 31, 2021, Zomato had 389,932 active restaurant listings and a presence in 525 cities in India and 23 other countries.
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