google/zomato
Zomato’s stock price fell drastically by more than 11% today in the morning trading session as the year-long lockdown for developers, shareholders, employees and others end today. The food delivery-making platform’s total payout over a year is around 78% and market experts expect Zomato’s stock prices to come under selling pressure this week. Zomato Limited’s public offering was listed on the BSE and NSE on July 23, 2021.
Zomato’s share opened flat and later went lower in the early morning trading session and went on to break a lifetime low that was ₹50.05 per share and then hit another record low of ₹47.30 within minutes of today’s opening bell. Speaking about the trigger for the Zomato stock sale, Anuj Gupta, VP – Research Division at IIFL Securities, said, “Shares of Zomato were listed on Indian bourses on 23rd July 2021, which mean one-year lock-in for promoters, company employees, founders of the company, etc. has ended today. As these shareholders constitute around 78 per cent of the total paid-up capital of Zomato Limited, shares of this food service under sell-off pressure in the early morning session today.”
The Shares of Zomato were listed at a strong premium of more than 51 per cent. After the bumper listing, Zomato shares went upto the levels of ₹169 per share in November 2021 breaching ₹1 trillion market valuations during its post-listing rally.
“The stock is expected to remain bears’ favourite sell on rise for short to medium term as the stock was offered at ₹76 per equity share in the primary markets around a year ago. So, after the end of one year lock-in for Zomato shareholders, who constitute around 78 per cent of the total paid-up capital of the company, would look to exit on every bounce in the stock, especially when it would come around its offered price of ₹76 apiece levels,” Said the Head of Research of Profitmart securities said Avinash GorakGorakshkar.