Zomato share witnesses continuous gains after a successful listing
After a stellar debut on the stock market on Friday, food delivery company Zomato witnessed significant gains in its share on the second day.
On Monday, Zomato’s shares surged to 13 percent on the Bombay Stock Exchange (BSE) at the high of ₹143 per share. On Friday, Zomato became India’s first online food delivery unicorn to go public and capture the local capital markets.
While the listing was scheduled to take place on July 27, Zomato made its debut four days ahead of the timetable. After the historic moment for India’s domestic capital market, Zomato’s stock is expected to witness huge demand in the coming weeks.
Co-founders turn millionaires
Zomato’s listing not only turned its co-founders into millionaires but several employees as well. As the company’s stock ended 65 percent higher than the₹9,400 crore initial public offerings (IPO), the fortune of its CEO and co-founder Deepinder Goyal increased to close to $1 billion.
Reportedly, the IPO was subscribed more than 40 times, making it the country’s biggest offering since March 2020. According to Bloomberg Billionaires Index, Goyal’s net worth now stands at $650 billion in accordance with his 4.7 percent stake in the food delivery startup.
In a blog post on Friday, Goyal termed it a “big day” for the company. “A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem,” he said
Its IPO closed for subscription on July 16, following which it saw a massive response from all sections of investors. The opening-day boost took Zomato’smarket capitalization above Rs 1 lakh crore. With this development, Zomato entered the list of the top 50 most valuable publicly traded companies in India, surpassing Mahindra and Mahindra and Tata Motors.
“The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long-term view of our business,” Goyal added in his blog.
He also named Zomato and its competitor Swiggy as two of the best food delivery apps in the world today. Founded in 2008, the food delivery platform is now operating in more than 500 cities across India and has partnerships with almost 390,000 restaurants nationwide.