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Bumper debut for Zomato:shares list with nearly 53% premium; 'big day for us', says CEO Deepinder Goyal

11:34 AM Jul 23, 2021 | FPJ Web Desk

Shares of Zomato on Friday zoomed nearly 53 per cent in its debut trade against its issue price of Rs 76.

The stock made its debut at Rs 115, reflecting a huge gain of 51.31 per cent against the issue price on the BSE. It then hit a high of Rs 138, a jump of 81.57 per cent.

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At the NSE, it got listed at Rs 116, registering a premium of 52.63 per cent.

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Zomato tweeted out a heart emoji with from 'one day' to 'day one'.

In a letter to shareholders reported by Livemint, co founder and CEO, Deepinder Goyal said: Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem.

..don’t know whether we will succeed or fail – we will surely, like always, give it our best."

Zomato's initial public offering (IPO) last week ended with a bumper 38 times subscription.

The IPO had opened for subscription on July 14, in a price band of Rs 72-76 per share. It closed on July 16.

The company, backed by Jack Ma's Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.

The Zomato IPO comprised a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale (OFS) worth Rs 375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com, according to the information provided in the draft red herring prospectus.

Incorporated in 2008, Zomato is present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.

Short-term listing gain

"In our view, Zomato IPO is richly valued, which may not sustain in the long run. Retail Investors may apply for this IPO for short-term listing gain. However, these gains may not sustain themselves in the long run," said Amit Jain, Chief Strategist of Ashika Group, and Co-founder of Ashika Wealth Advisory.

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