The stock rose 82.8 percent after opening at Rs 115 in pre-open trade. The stock also put up an upper circuit during trading, which was Rs 138. The initial public offering (IPO) of Rs 76 was 52.6 percent premium at a price. Due to which the price of the company is about $ 12 billion (about 89,450 crore rupees). Zomato, a 9,375 crore IPO supported by China’s Ant Workforce, is the first for a startup in India’s food delivery market, which has been estimated by the research firm Redseer $ 4.2 billion (about Rs 31,280 crore).
The domestic food aggregator launched in 2008 operates in about 525 cities in India and has partnered with around 390,000 restaurants. Last week, the company’s offering bid for $ 46.3 billion (about Rs 3,45,220 crore), as it was over 38 times oversbscribe, with big institutional investors also making major bets.
Danni Hawson, a financial analyst at an investment platform AJ Bell, an investment platform in England, said, “Even though Zomato may not be profitable but it is growing rapidly and is enthusiastically deployed to maintain that speed.” The ZOMATO deficit for the year ended 31 March fell by Rs 813 crore while the renovation from Operations fell slightly to Rs 1,994 crore.
