Zomato Shares End 65% Higher On Stock Market Debut
Zomato Ltd. made a stellar market debut surpassing expectations as the opening-day surge propelled its value past Rs 1 lakh crore.
The stock of the online food delivery platform listed at Rs 115 apiece on the National Stock Exchange, a 51.3% premium to its issue price of Rs 76. And rose to an intraday high of Rs 138.9 (or nearly 83% above the IPO price). It pared some of the gains to end its first day of trading about 64.8% higher at Rs 125.3.
Zomato's Rs 9,375-crore IPO, open from July 14-16, was subscribed 40.4 times, becoming the fourteenth most subscribed issue so far in 2021.
The portion reserved for institutional investors was subscribed 54.7 times, while that of non-institutional counterparts saw 34.8 times more demand than shares on offer. Retail investors, too, piled in with the category reserved for them subscribing 7.9 times.
The company will use the proceeds to fund organic and inorganic growth. Investment will also go toward general corporate purposes. In an interview to BloombergQuint, co-founder Gaurav Gupta said the 13-year-old company is also entering the high investment and competitive grocery segment.