PremiumZomato shares today registered bumper listing at NSE and BSE delivering more than 50 per cent premium to its lucky bidders. However, there is huge number of applicants, who failed to get Zomato share during allotment process. Such bidders are thinking of whether they should buy Zomato share after listing or not. For such investors, stock market experts have suggested to wait for some correction as profit-booking in the counter is strongly awaited. They advised such investors to buy Zomato shares at around ₹100 and hold it for long-term as it is expected to go up to ₹210 by the end of 2021.
On possibilities after Zomato share price listing; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The way public issues have been performing in the last 2-3 months, I am expecting sharp correction in the counter and Zomato share price may come around ₹95 to ₹100 as some selected type of investors who invest in public issues and come out of it after listing are expected to book profit. If this happens and Zomato share price comes in this range, only then one should buy the counter and maintain buy, hold and forget strategy as it would give better returns in long-term."
Advising Zomato share holders to book listing gains; Kapil Goenka, Director at CM Goenka Stock Brokers said, "One of the most awaited and much-talked-about Initial Public Offering (IPO) in recent times, Zomato has filed for its IPO with pre open volume of over 19 crore. At a fantastic market capitalization of over 1 lakh crore, Zomato is backed by Sanjiv Bhikchandani led Info Edge India Group. The IPO made a fantastic entry, with a bumper listing up by 73 percent. For the investors who are looking to gain from this IPO, Zomato might prove a gem. Moreover, in the backdrop of the Coronavirus pandemic, Zomato IPO and enthusiasm around this has undoubtedly boosted the investors’ confidence in the IPO market. However, we advise that successful allottees must book full profit and must wait for some time to buy again."
Saurabh Jain, AVP-Research at SMC said, "Zomato has announced that its market capital to sale value will become 15 times in next three years. So, it will be important to see how they are going to achieve this target and one need to keep an eye on its upcoming quarterly results."
On what should be the strategy for those Zomato IPO subscribers who failed to get shares during allotment Ravi Singhal, Vice Chairman at GCL Securities said, "Those who couldn't make into the list of lucky bidders of Zomato IPO, they should buy with 50% of their portfolio amount and keep on accumulating till it's above ₹100 mark maintaining stop loss at ₹90. The counter is a long-term portfolio stock and it is expected to go up to ₹190 to 210 by the end of 2021."
Zomato share price is currently trading at ₹123.30 (at 11:18 AM today) after making its intraday high of ₹138.90 per share levels.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!