Zomato Shares Jump 53 Percent Above Offer Price in Stock Market Debut

In the first stock market listing of an Indian startup valued at more than $1 billion (roughly Rs. 7,450 crores), shares of food delivery firm Zomato opened at a 52.6 percent premium to their offer price on Friday, gaining a market valuation of about $12 billion (roughly Rs. 89,450 crores).

Shares opened at Rs. 116 in pre-open trade compared to the initial public offering (IPO) price of Rs. 76.

The company is offering 1.23 billion shares for sale at the higher end of its price band, with the size of the IPO coming up to Rs. 9,375 crores.

The listing, which was advanced by four days, comes as India's stock market is near all-time highs, with strong interest for digital companies backed by foreign funds.

The home-grown food aggregator, launched in 2008, operates in about 525 cities in India and has partnered with close to 390,000 restaurants.

The company's offering last week drew bids worth $46.3 billion (roughly Rs. 3,45,220 crores) as it was more than 38 times oversubscribed, with big institutional investors also placing major bets.

© Thomson Reuters 2021

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