Zomato shares close nearly 66 per cent higher over issue price
Food delivery platform Zomato made a lip-smacking debut on the stock exchanges on Friday with its shares ending nearly 66 per cent higher over the issue price and its market valuation crossing the Rs 1-lakh-crore mark during intra-day trading.
The scintillating show on the opening day is a reflection of investor appetite for technology companies even if they are loss making. This could encourage others to tap the primary market.
Zomato’s initial public offering (IPO) was subscribed over 38 times and it had come in the price band of Rs 72-76 per share.
On the BSE, its shares opened at Rs 115, a huge gain of 51.31 per cent against the issue price of Rs 76. It then hit a high of Rs 138 that saw its market capitalisation go past the Rs 1-lakh-crore-mark.
The counter, however, gave up some of its gains to close at Rs 125.85 — a premium of almost 66 per cent to the issue price, giving it a market capitalisation of Rs 98,731.59 crore. Zomato is now among the top 50 companies on the BSE in terms of market capitalisation.