Zomato shares fell to a record low on Monday morning from last day previous close 53.65 to 46 as the lock-in period for pre-IPO shareholders ended on July 23.
The public issue of Zomato Limited was listed on BSE and NSE on July 23, 2021.
Pre-IPO shareholders includes promoters, employees & other institutions had ended.
The shares were down nearly 12 per cent in early trade. The food chain platform’s total paid-up capital of the one-year overhang is around 78 per cent and market experts were expecting sell-off pressure for the Zomato shares this week.
Zomato shares went on to make its life-time high of ₹169 per share levels in November
2021 breaching ₹1 trillion market valuations during its post-listing rally.
But plunged nearly 80% from last quarterly period. One of the earliest investors on Zomato’s cap table is Info Edge. Although the Sanjeev Bikhchandani-led company registered a gain of Rs 357 crore from the public issue last year, it still holds a 15.18 percent stake in the food delivery company amounts to more than Rs 6,330 crore.
Punit Patni, Equity Research Analyst, Swastika Investmart Ltd., said: “Zomato Ltd. has witnessed a significant underperformance since its listing and has fallen a whopping 71 percent from its all-time high price. The company has been shunned by the investors post the beginning of the rate hike cycle by the central banks globally and the huge sell-off in the tech sector. Further, the company will take significant time to show profitability and the current market sentiments are punishing startups that are growing without showing profits. Therefore, we are averse to Zomato Ltd. despite its strong position in the online Food Service platforms and the current correction."
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