Business

Ant-backed Zomato soars in India market debut, valued at US$12 billion

Shares of Indian food delivery firm Zomato Ltd opened at a 52.6per cent premium to their initial public offering price on Friday, in the country's first stock market listing of a startup valued at more than US$1 billion.

Illustration picture of Indian food delivery company Zomato
FILE PHOTO: 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. REUTERS/Florence Lo/Illustration
(Updated: )

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BENGALURU -In the first stock market listing of an Indian startup valued at more than US$1 billion, shares of food delivery firm Zomato Ltd opened at a 52.6per cent premium to their offer price on Friday, gaining a market valuation of about US$12 billion.

Shares opened at 116 rupees in pre-open trade compared to the initial public offering (IPO) price of 76 rupees.

The company is offering 1.23 billion shares for sale at the higher end of its price band, with the size of the IPO coming up to 93.75 billion rupees.

The listing, which was advanced by four days, comes as India's stock market is near all-time highs, with strong interest for digital companies backed by foreign funds.

The home-grown food aggregator, launched in 2008, operates in about 525 cities in India and has partnered with close to 390,000 restaurants.

The company's offering last week drew bids worth US$46.3 billion as it was more than 38 times oversubscribed, with big institutional investors also placing major bets.

(US$1 = 74.5250 Indian rupees)

(Reporting by Chandini Monnappa and Anuron Kumar Mitra in Bengaluru; Editing by Arun Koyyur)

Source: Reuters