Zomato's market cap crosses Rs 1 lakh crore after blockbuster D-Street debut

Food delivery giant Zomato made a fantastic market debut, trading at Rs 116 on the NSE at the opening bell. This is 52.63 percent higher than its final offer price of Rs 76. On BSE, Zomato traded at Rs 115, a 51.32 percent premium when the market opened.

The Zomato share further increased the listing gains, trading at Rs 127.25 per share, up 67 percent.

With the blockbuster opening, Zomato’s market capitalization is now more that Rs 1 lakh crore, standing at Rs 1,08,067.35 crore. This makes it bigger than IOC and BPCL.

Zomato had initially seen fantastic response to its Rs 9,375-crore initial public offering. Having opened from subscription between July 14 to July 16, it generated a lot of excitement with 38.25 times subscription. This was the highest among all IPOs of more than Rs 5,000 crore in the last 13 years.

Analysts had expected Zomato to overperform. Things that worked in favour of the food delivery giant were being the first one in the sector to list, investor demand, market positivity, consistent growth and improving financial health.

Founder and CEO Deepinder Goyal penned a letter post the opening. He 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.”

Never been so excited and indifferent at the same time. #ZomatoIPO pic.twitter.com/fFVzSAXjvF

— Deepinder Goyal (@deepigoyal) July 23, 2021

Zomato was founded in 2010 to connect customers and restaurants via technology and delivery partners. It also provides partner restaurants tools for industry-specific marketing to engage customers and grow. Another valuable product at Zomato is its one-stop procurement solution called Hyper-pure. With Hyper-pure, Zomato supplies its partner restaurants high quality ingredients and products.

Zomato has a strong presence across India, operating in 525 cities and having 3,89,932 active restaurants listed, as of March 2021. It also runs in 23 other countries.

Zomato will use the IPO funds to propel organic and inorganic growth plans.