Zomato debuts on Sensex, inflows worth over ₹4,300 crore expected
Zomato's Sensex entry makes inflows of $513 million or ₹4,362.35 crore expected while for JSW Steel which it replaces, outflows worth $252 million may occur
Food delivery giant Zomato Ltd is debuting on the Bombay Stock Exchange's (BSE) benchmark Sensex index on Monday, December 23, 2024, making it the first startup or newer company to do so.
The logo of Indian food delivery company Zomato is seen on its app on a mobile phone displayed in front of its company website in this illustration picture taken July 14, 2021 (Florence Lo/Reuters)
Zomato has replaced steel giant JSW Steel Ltd on the index comprising of the country's top 30 companies.
This put the company's shares in focus as the Sensex inclusion on its own is expected to drive inflows worth $513 million ( ₹4,362.35 crore) into Zomato and outflows worth $252 million ( ₹2,142.91 crore) from JSW Steel, according to an Economic Times report which cited estimates from brokerage firm Nuvama.
The development comes at a time when the food delivery giant's shares rallied nearly 43% over the last six months and about 126% over the last year.
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The development comes at a time when the food delivery giant's shares rallied nearly 43% over the last six months and about 126% over the last year.
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JSW Steel in comparison had gained just about 9% over the year.
“Over the past 18 months, as Zomato started to demonstrate its ability to gradually improve unit economics and move towards breakeven and beyond (especially in the qcom segment), the stock rallied by almost 150%,” the report quoted brokerage firm UBS as having said in its latest report.
At the same time, Zomato reported a 69% year-on-year increase in consolidated revenue from operations to ₹4,799 crore during the second quarter of the financial year 2024-25, with its net profit rising five times to ₹176 crore.
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The food delivery giant's market cap of ₹2.72 lakh crore surpassed JSW Steel's ₹2.24 lakh crore too.
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