Zomato shares continue rally on stock market after bumper IPO
Zomato, the food delivery service which made an impressive debut on the stock market on Friday, saw its shares gaining on the second day on Monday. Shares of Zomato were trading 2.5 per cent higher on the Bombay Stock Exchange (BSE) at ₹129 per share, Livemint reported.
The company's shares opened at ₹116 and surged 65 per cent in its stock market debut on Friday, turning its founder, Deepinder Goyal, into a billionaire.
It ended trading at ₹125.30 on BSE that day, valuing the company at $13.3 billion. Zomato had crossed the market capitalisation of ₹1 lakh crore soon aftrer listing.
It has now among the 50 most valuable publicly traded firms in India, beating Mahindra and Mahindra, Tata Motors and Coal India Ltd.
Zomato's initial public offering (IPO) last week ended with a bumper 38 times subscription.
"Despite the large size of IPO at ₹9,375 crore and rich valuations, the company saw a healthy overall subscription of 38 times. There is a lot of fancy for such a unique and first of its kind listing in the market. Zomato with first-mover advantage is placed in a sweet spot as the online food delivery market is at the cusp of evolution," said Sneha Poddar, Research Analyst, Broking & Distribution, Motilal Oswal Financial Services Ltd.
The IPO of Zomato was India's biggest initial share sale offer since March 2020. The IPO had opened for subscription on July 14, in a price band of ₹72-76 per share. It closed on July 16.
The company, backed by Jack Ma's Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO.