Shares of Zomato hit a new low on slipping over 10 per cent for a second straight day after the one-year freeze on all its pre-IPO (initial public offering) shareholding ended.
The stock of the food delivery start-up touched an all-time low of Rs 41.40, down 13 per cent on the BSE in intra-day trade on Tuesday. In the past two trading days, it has plunged 23 per cent from a level of Rs 53.65 on Friday.
With the decline in last two days, Zomato now trades 46 per cent below its issue price of Rs 76 per share. The company made a stock market debut on July 23, 2021. The stock has corrected 76 per cent from its record high level of Rs 169.10 touched on November 16, 2021.
Investors of Zomato have lost more than Rs 1 trillion after a sharp decline in market price of the company from its record high level. The market capitalistion of Zomato has eroded by Rs 1.01 trillion to Rs 32,588 crore (from Rs 1.33 trillion) in intra-day trade today.
At 01:52 pm, the stock was down 12 per cent to Rs 41.90, as compared to a 0.63 per cent decline in the S&P BSE Sensex. The company’s market-cap stood at Rs 32,991 crore, the BSE data showed.
The trading volumes on the counter have more-than-doubled as compared to average daily volumes in the past two weeks. A combined 317 million equity shares had changed hands on the NSE and BSE at the time of this report, the exchanges data showed.
Market players attributed the selling pressure to Zomato’s atypical shareholding pattern. The company — the first major start-up to list — has no promoter shareholding. Most of its shares are in the hands of private equity and venture capital funds, employees, and founders (who are not classified as promoters). CLICK HERE FOR FULL REPORT.
Meanwhile, despite the concerns surrounding the profitability of the company, the acquisition of Blinkit which analysts feel will only lengthen its road to profitability and the sharp fall in its share price since listing, analysts at Jefferies suggest long-term investors ‘buy’ the stock and maintain a price target of Rs 100. CLICK HERE FOR FULL REPORT