Zomato starts trading at Rs 116 , Premium of 53℅

“Market is expecting a price band of Rs 70-72 for the Zomato IPO" : Abhay Doshi

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Zomato, online food delivery platform, shares were trading with a strong premium in the primary market, after the company received SEBI’s go-ahead to raise Rs 8,250 crore through an IPO. Info Edge, a key shareholder of Zomato, has reduced the size of its offer for sale (OFS) by half to Rs 375 crore from Rs 750 crore planned earlier. On Tuesday, Zomato shares were seen quoting at a premium of Rs 16.5 apiece, over the tentative price band of Rs 70-72 a share. The shares were trading at Rs 88.5 apiece, implying a premium of 23 per cent over the tentative IPO price, according to the people who deal in shares of unlisted companies.

Zomato shares have made a stellar debut on the bourses after the share listing was advanced from the scheduled date of July 27. The shares of the food startup opened at ₹ 116, a premium of ₹ 53 per cent compared to the issue price of ₹ 76. At 10:05 am, Zomato shares were trading at the day's high of ₹ 134.70, up 77.63 per cent on the BSE and ₹ 135.60, up 77.57 per cent on the NSE.

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Zomato is India’s home grown unicorn company and significantly one of the most awaited IPO. There is a lot of zeal on D-Street even before the IPO announcement. “Market is expecting a price band of Rs 70-72 for the Zomato IPO. The listing of the unicorn startup will be more in focus with respect to its valuations as the market will probably not value such companies traditionally,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares,said.Doshi added that recently listed DoorDash Inc. on NYSE has given stellar returns to its investors while India is still in its nascent stage in this sector where there are immense growth opportunities.

Zomato's ₹ 9,375-crore offer had received a stupendous response from the investing community. The IPO was subscribed 38.25 times; the portion reserved for qualified institutional buyers (QIB) was subscribed 51.79 times, non-institutional investors attracted 32.96 times subscription and retail segment, 7.45 times. 


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