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Bumper debut for Zomato; shares list with nearly 53%premium

Zomato IPO had opened for subscription on July 14, in a price band of ₹72-76 per share.   | Photo Credit: Sudhakara Jain

Shares of Zomato on Friday zoomed nearly 53% in its debut trade against its issue price of ₹76.

The stock made its debut at ₹115, reflecting a huge gain of 51.31% against the issue price on the BSE. It then hit a high of ₹138, a jump of 81.57%.

At the NSE, it got listed at ₹116, registering a premium of 52.63%.

Zomato’s initial public offering (IPO) last week ended with a bumper 38 times subscription.

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. It is also the first among Indian online food aggregators.

The Zomato IPO comprised a fresh issue of equity shares worth ₹9,000 crore and an offer-for-sale (OFS) worth ₹375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com, according to the information provided in the draft red herring prospectus.

Incorporated in 2008, Zomato is present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.

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Printable version | Jul 23, 2021 11:33:44 AM | https://www.thehindu.com/business/bumper-debut-for-zomato-shares-list-with-nearly-53premium/article35482597.ece

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