Share of Rs 76 listed at Rs 115

The value of Zomato shares almost doubled in debut trading on Friday. The value of this food delivery firm crossed $1 billion (about Rs 7,450 crore) in the first stock market listing of an Indian startup. Investors showed interest in internet based startups. The reason is that it is these startups that have the potential to grow well even during a pandemic like COVID-19. Currently, India’s stock market is at its all-time high.

The shares gained 82.8 per cent after opening at Rs 115 in pre-open trade. This share also hit the upper circuit during trading which was Rs 138. There was a 52.6 per cent premium on the initial public offering (IPO) price of Rs 76. Due to which the value of the company is approximately 12 billion dollars (approximately Rs 89,450 crore). Zomato’s Rs 9,375 crore IPO, backed by China’s Ant Group, is a first for a startup in India’s food delivery market, which is valued at $4.2 billion (roughly Rs 31,280 crore) by research firm RedSeer.

The home-based food aggregator, launched in 2008, operates in around 525 cities in India and has partnered with around 390,000 restaurants. The company’s offering last week attracted bids of $46.3 billion (roughly Rs. 3,45,220 crores) as it was oversubscribed by more than 38 times, with large institutional investors also placing major bets.

“Growth is what matters most here,” said Danni Hewson, a financial analyst at AJ Bell, an investment platform in England. “While Zomato may not be profitable, it is growing fast and is looking to maintain that momentum.” Enthusiastically deployed.” Zomato’s loss for the year ended March 31 widened to Rs 813 crore while revenue from operations fell slightly year-on-year to Rs 1,994 crore.