Zomato share price: GAINING streak continues, hits new life high; stock up near 30% in 3 sessions

The food delivery aggregator — Zomato shares hit a new all-time high on Tuesday to Rs 147.8 per share, after surging for third straight session by around 5 per cent on the BSE intraday trade. 

In the last three sessions, since its listing on Friday (July 23, 2021), the stock has jumped almost 30 per cent from its listing price of Rs 115 per share on stock market debut. The counter was listed near 60 per cent higher premium to Rs 120 per share on both NSE and BSE versus its issue price.

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The counter has surpassed its earlier record high level of Rs 138 per share, touched during listing day, while it’s life-time low is registered at Rs 114 per share on the BSE, during its listing on Friday.

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. 

Till around 12:00 pm, the stock was trading at life high level, however, started declining eventually and is trading one per cent down to Rs 139.4 per share at around 02:45 pm, amid profit booking. In comparison the S&P BSE Sensex is trading at 0.6 per cent lower on Tuesday.

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 comprises 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).   

UBS has initiated has a buy rating for Zomato shares with a target price of Rs 165 a share, expecting a 20% upside. The brokerage sees a long runway for the company under-penetration in India as a percentage of total food spend is 10-11 per cent, one-fourth of that of China in percentage terms.