Shares of the country’s leading food startup – Zomato made a strong market debut on Friday, July 23, closing its very first day of trade at Rs 126 per share on the BSE. The shares jumped 65 per cent from the initial public offer (IPO) price of Rs 76. Zomato ended the first day of trade eight per cent above the listing price and had a market capitalization of Rs 98,221 crore, upon closing. (Also Read: Today’s Special: Zomato Starts Trading At ₹ 116, A Premium Of 53% )
Shares of Zomato settled 65 per cent or Rs 49.86 higher at Rs 125.85 apiece on the BSE. The shares opened at Rs 116 – a premium of Rs 53 per cent compared to the issue price of Rs 76. During the trading session, Zomato’s shares jumped as much as 83 per cent from the issue price to hit an intraday high of Rs 138.90. It inched to an intra day low of Rs 114, during the session.
Zomato achieved a market capitalisation of ₹ 1.08 lakh crore on the BSE at the day’s highest level, making it one of the few listed companies to enter Rs 1 lakh crore market capitalisation group on its market debut.
Zomato is also the first Indian mega startup to go public and was the second-largest IPO after the ₹ 15,199.44 crore Coal India share sale – in October 2010. The public offer of the online food delivery service provider has paved the way for various leading digital firms such as Paytm, Flipkart and Ola to take the IPO route.
Zomato’s ₹ 9,375-crore offer had received a huge response from investors as the IPO was subscribed more than 38 times on the final day of the offer. The portion reserved for qualified institutional buyers was subscribed 51.79 times, the retail segment was subscribed 7.45 times, and the portion for non-institutional investors was subscribed 32.96 times.