Mumbai (IANS) Stocks of online food delivery platform Zomato made a stellar debut on the stock markets with market valuation crossing the Rs 1 lakh crore mark during the initial hours of trade on the first day.
At the end of the day’s trade, the market capitalisation of Zomato was at Rs 98,731.59 crore.
On Friday, its shares on the BSE closed at Rs 125.85, higher by Rs 10.85 or 9.43 per cent from the issue price of Rs 76 per share.
At the BSE, it got listed at Rs 115 a share.
Further, on the National Stock Exchange, its shares ended the day’s trade at Rs 125.30, against the issue price of Rs 76.
It got listed on the NSE at Rs 116 per share.
The much-anticipated initial public offering (IPO) of Zomato was subscribed over 38 times by the end of the final day of the issue on Friday.
According to data on the BSE website, qualified institutional buyers (QIB) subscribed 51.79 times of their earmarked portion. The portion of the non-institutional investors was subscribed 32.96 times.
Furthermore, retail investors subscribed 7.45 times of the portion allocated to them. The portion reserved for employees was subscribed 0.62 times.
“Zomato, India’s leading online food delivery company, listed strongly on the exchanges today with 53 per cent premium at Rs 116 per share against its issue price of Rs 76 per share,” said Sneha Poddar, Research Analyst, Broking & Distribution, Motilal Oswal Financial Services.
“Such stellar debut on exchanges led to its market capitalization crossing Rs 1 lakh crore. Despite the large size of IPO at Rs9,375 crore and rich valuations, the company saw healthy overall subscription of ’38x’.”
According to Vinod Nair, Head of Research at Geojit Financial Services: “For successful IPO allocation, though the listing is much above the expectations, current investors can hold on to their shares as this new business is forecasted to growth at the high digit in the early stage of the cycle. For new and existing investors, can accumulate on a short to medium-term basis, as the trend of stock price stabilises.”
“A key factor for the stock price to sustain this euphoria is to demonstrate improvement in profitability in the coming quarters. The company is highly expected to turn into profit from current loss, else the performance will be impacted.”