Zomato share price nearly doubled in the first trade on Friday. The food delivery firm would have cost more than $ 1 billion (approximately Rs 7,450 crore) in the first list of the first Indian stock markets.
Investors have shown interest in Internet-based startups. The reason is that these startups have the potential to grow well in the face of an epidemic such as COVID-19.
The Indian stock market is currently at a very high level.
Shares increased by 82.8 per cent after opening to Rs 115 in open trading.
The stock also hit the above region at the time of the trade which was Rs 138.
It was 52.6% premium above the initial public offering (IPO) price of Rs 76. 89,450 pounds).
ZOmato’s 9,375 crore crore IPO, sponsored by Ant Group of China, is the first to start in the Indian food delivery market, valued at $ 4.2 billion (approximately Rs 31,280) by research firm RedSeer.
The homemade food aggregator, launched in 2008, operates in around 525 cities in India and is connected to about 390,000 restaurants.
The company’s offer last week received a $ 46.3 billion bid (approximately Rs 3,45,220 crore) as it had been registered more than 38 times, and investors from major institutions were also betting heavily.
Danni Hewson, financial analyst at AJ Bell, an investment center in England, said, “Growth is very important here.
While Zomato may not be profitable, it is growing rapidly and should keep that momentum going. Posted enthusiastically.
“Zomato’s losses for the year ended March 31 were Rs 813 crore while revenue from operations decreased slightly to Rs 1,994 crore annually.