Zomato, the food delivery major, has an IPO price of Rs 76 per share. It is listed at Rs 116 on the index with a premium of about 52 per cent. This makes it one of the top 10 companies in the IPO after 2020 with a premium listing of 50%. At 1:20 pm, the Sensex was up 62 percent at Rs 123.35.
Shares of the company, on the other hand, touched the upper circuit at Rs 138 at one stage. With this, the company’s market capitalization has crossed Rs 1 lakh crore. This puts it opposite the top 50 most valued companies on the BSE.
This is the first time a food delivery company has made an IPO. Also, analysts believe that the positive trend in the stock markets over the past few days has contributed to the good start of Zomato. Criticisms abound that the company is in fact overestimating value.
Zomato, on the other hand, has been expanding its presence in the market regardless of profits and losses. Orders were 3.06 crore in the 2018 financial year. It is expected to increase to 23.89 crore by 2021. As of March 2021, Zomato is serving 525 cities in India. A total of 3,89,932 restaurants are listed on Zomato.