Zomato market cap breaches Rs 1 lakh crore after stellar D-Street listing- Avaneesh Parasar
Zomato entered the elite club of Top 100 listed companies in value terms, with a market capitalization of Rs 90,219.57 crore, Avaneesh Parasar
Zomato scripted history on Friday by becoming India’s first unicorn to debut on the stock exchanges. The scrip got listed at Rs 115 on BSE, a 51.32 per cent premium to the issue price of Rs 76. On NSE, the stock made a debut at Rs 116, up 52.63 per cent. With its mega listing, Zomato entered the elite club of Top 100 listed companies in value terms, with a market capitalisation of over Rs 1 lakh crore. At issue price, its market cap stood nearly at Rs 65,000 crore; 100th member’s current m-cap is Rs 44,685.37 crore.
The Rs 9,375 crore issue had received bids for Rs 2.13 lakh crore worth shares which were the third-highest in Indian capital history. The listing was advanced to Friday. Given the strong demand for the issue, analysts were largely expecting the IPO to list at a 25–30 per cent premium.
A leading online food aggregator, Zomato offers a platform for connecting consumers with restaurants. On average, 3.21 crore monthly active users (MAUs) visited the Zomato platform in FY21. The company has a presence in 525 cities and has 389,932 active restaurant listings. It also had 1,69,802 active delivery partners as of March 31. Other than India, the company has footprints across 23 countries.
Despite Zomato gaining significant scale in terms of revenue — clocking 62 percent annual growth over FY18-FY21 — the company continues to incur losses. While a few brokerages were cautious on the IPO, investors lapped up the issue with both hands. Overall, the issue was subscribed 38 times. The IPO quota reserved for qualified institutional buyers (QIBs) was subscribed 54.71 times while the those reserved for non-institutional investors (NIIs) 34.80 times. The retail quota was subscribed 7.87 times.
Source- https://economictimes.indiatimes.com/markets/ipos/fpos/zomato-lists-at-53-premium-over-issue-price-enters-elite-club-of-top-100-cos-by-market-value/articleshow/84666820.cms
