Zomato share price snaps gaining streak amid profit booking; stock declines over 12% in 2 sessions
Amid profit-booking, the shares of Zomato slump almost 7 per cent to Rs 123.6 per share on the BSE intraday trade today. The stock till the afternoon was trading positive, however, ended negative eventually at close yesterday. In the last two days, the scrip has cracked over 12 per cent from Rs 141 a share.
At around 12:25 pm, the counter is trading almost 4.5 per cent lower to Rs 127 per share on the BSE, as against a 0.74 per cent decline in the S&P BSE Sensex. Zomato shares made a stock market debut on Friday (July 23) and surged around 60 per cent to Rs 120 per share on both NSE and BSE.
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On Tuesday, the scrip had hit a news 52-week high of Rs 147.8 per share, while it has registered Rs 114 per share as an all-time low on the BSE. Moreover, the company’s market fell below the 1 lakh crore mark on Wednesday amid profit booking.
The three-day initial public offer of Zomato was launched on July 14, 2021, and closed on July 16, 2021, for an issue size of Rs 9,375 crore and with a price range of Rs 72-76 per share.
The company backed by Jack Ma’s Ant Group mobilised Rs 4,196.51 crore from 186 anchor investors a day before IPO. And, it was oversubscribed by 38 times, mostly by the QIBs.
Zomato is one of the first Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators. The IPO comprised of a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale (OFS) worth Rs 375 crore by existing and early investor Info Edge (India).
As per analysts, Zomato has positives such as asset-light scalable business model, expanded target market post the pandemic, first-mover advantage in the food delivery business, among others.
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