JOIN USAfter bumper IPO, Zomato market cap soars past Coal India, Tata Motors
After a massive IPO where its shares nearly doubled in value on debut, Zomato is now valued at a whopping Rs 98,732 crore. This puts the food delivery services company ahead of India's major companies like Tata Motors, Coal India and Mahindra and Mahindra.
The Deepinder Goyal-led company went public in the first listing of a unicorn in India on Friday. After hitting an intra-day high of Rs 138 on the BSE, the company closed at Rs 126.
Zomato's successful IPO will give confidence to other valuable startups of India who are lining up for their listings, including PayTM, Mobikwik, CarTrade and Delhivery.
After the overwhelming response from retail investors for its IPO, the food delivery platform CEO Goyal wrote, "The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best."
The tremendous response to the company's IPO, "gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business," he added.
The IPO of Zomato was India's biggest initial share sale offer since March 2020.
"The stellar debut of Zomato on the domestic bourse after attracting robust subscription is a testimony to the fact that investors are willing to bet big on new-age technology companies which have the characteristics of a disruptive business model. It is also a tribute to Indian entrepreneurship," S Ramesh, MD & CEO, Kotak Mahindra Capital Company said.
Zomato has said it will utilise the IPO proceeds for funding organic and inorganic growth initiatives and general corporate purposes. Incorporated in 2008, Zomato is present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.
(With inputs from PTI)
Check out DH's latest videos: