Zomato GMP rises further as share allotment announced

As per the financials of the company, Zomato IPO listing gain can be expected around 25 per cent or roughly near ₹15 per Zomato shares on the listing date of the public issue. Photo: Zomato website

2 min read . Updated: 22 Jul 2021, 11:27 AM IST Livemint, Edited By Asit Manohar

After Zomato IPO allotment, its share price premium in the grey market has gone up from ₹10 on July 14th to ₹23 today i.e. 22 July 2021 — logging 130 per cent rise in Zomato IPO grey market premium

Zomato IPO: Online food service platform major Zomato share price in the grey market is available at a premium of ₹23 today. That means, Zomato IPO GMP today is ₹23, which is ₹2 up from its yesterday's Zomato IPO grey market premium of ₹21. According to the market observers, Zomato IPO GMP has been continuously rising from 14th July 2021 — Zomato IPO subscription opening date. They said that Zomato share price premium in the grey market has gone up from ₹10 on July 14th to ₹23 today i.e. 22 July 2021 — Zomato IPO allotment date (check allotment status here) logging 130 per cent rise in Zomato IPO grey market premium.

What rise in Zomato IPO GMP means?

According to market observers, this rise in the Zomato IPO GMP is an indication that market is getting positive to ultra positive about the upcoming public issue. They said that Zomato IPO GMP today at ₹23 means the market is expecting listing gain of ₹23 from the public offer when it will get listed at the Indian bourses. As per the Red Herring Prospectus (RHP) of the public offer, Zomato IPO price band is ₹72 to ₹76 that means the grey market is expecting Zomato IPO listing at around ₹99 — near 30 per cent higher from its issue price offer.

However, Avinash Gorakshkar, Head of Research at Profitmart Securities said that GMP is not a concrete data that should be relied so heavily. He said that it's an unofficial short-term sentiment in regard to the public offer, which changes in one day as well. Gorakshkar went on to add that gery market involves even those people whose interests are at stakes in the public issue. So, sometimes it can be misleading too, and advised bidders and other market observers to rely on the balance sheet of the company as it gives clear picture about the financial health of the company.

Zomato IPO: Expected listing gain

Speaking on the expected listing gain from the Zomato IPO; Ashok Holani, Director at Holani Consultants Private Limited said, "As per the financials of the company, Zomato IPO listing gain can be expected around 25 per cent or roughly near ₹15 per Zomato shares on the listing date of the public issue."

Zomato IPO details

Credit of Zomato shares in the Demat Account of lucky bidders is expected on 26th July 2021 while tentative Zomato IPO listing date is 27th July 2021.

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