Zomato in focus as both FIIs and DIIs increase stakes in Q2; stock hits fresh 52-week high

Zomato Share Price: Shares of food delivery company Zomato hit a 52-week high for the second day in succession, as they reached Rs 115.00 each in early morning deals on BSE on Wednesday (October 18).

The shares had also hit the 52-week high on Tuesday (October 17) when they reached Rs 114.10 apiece. Prior to that, the stock had also touched the 52-week high on October 11 and 12.

Zomato's stock closed at Rs 113.90 in the trading session on Tuesday to open at Rs 114.25 on Wednesday. The shares closed the trading session on Wednesday down 0.61 per cent, or Rs 0.70, at Rs 113.20 each.  

Why Zomato shares are on a rise?

There has been a sharp rise in the food delivery company's stock price in the last six months when it has jumped 107.57 per cent against the Nifty 50 benchmark's jump of 12.56 per cent during the same period. 

One of the major causes behind the meteoric rise is the increased stakes of foreign entities (FIIs) and domestic entities (DIIs) in the last quarter. 

While FIIs have increased their stake in the company to 54.7 per cent in the second quarter from 54.4 per cent in the previous quarter, DIIs have shown more interest in Zomato, increasing their stake to 13 per cent in Q2FY24 from 9.9 per cent in Q1FY24.   

Rising stake of DIIs in Zomato

DIIs have been increasig their stake in Zomato for last five quarters. They are increasing their stake with the rising average price of Zomato shares.

Rising stake of FIIs in Zomato

Total number of FIIs in Zomato hit at an all-time high in the second quarer of the current financial year.

Zomato has been witnessing a jump in the number of FIIs for last two quarters.

The number of FIIs has increased by almost 2.6 times compared to the time of listing.

IRCTC ties up with Zomato

Meanwhie, food and catering company IRCTC has tied up with Zomato for the pre-order food delivery and supply through IRCTC's e-catering portal.

In the first phase, the facility will be available at the New Delhi, Prayagraj, Kanpur, Lucknow and Varanasi railway stations.

In a BSE filing on Tuesday, IRCTC said, "In view of widening the range of options available to rail passengers for ordering food of their choice under IRCTC’s E-Catering
segment, IRCTC has tied up with M/s. Zomato Limited for supply and delivery of pre-ordered meals through IRCTC’s E-catering portal as a Proof of Concept (PoC) in the first phase at five railway stations i.e. New Delhi, Prayagraj, Kanpur, Lucknow and Varanasi.