Zomato made a stellar debut on bourses on Friday, as its shares zoomed by nearly 53 per cent against the issue price of Rs 76. With the rally in the shares, the company’s market valuation went past the Rs 1,00,000-crore mark on the BSE. 

The stock made its debut at Rs 115, reflecting a huge gain of 51.31 per cent against the issue price on the BSE. It then hit a high of Rs 138, a jump of 81.57 per cent. On the NSE, it got listed at Rs 116, registering a premium of 52.63 per cent. The stock closed at Rs 125.85 and Rs 125.30 on the BSE and the NSE respectively, registering a 66 per cent premium against its issue price. 

“Despite the large size of the IPO at Rs 9,375 crore and rich valuation, the company saw a healthy overall subscription of 38 times. There is a lot of fancy for such unique and first-of-its-kind listing in the market. With the first-mover advantage, Zomato is placed in a sweet spot, as the online food delivery market is at the cusp of evolution,” said Sneha Poddar, a research analyst (broking & distribution) of Motilal Oswal Financial Services. 

The IPO of Zomato was India’s biggest initial share sale offer since March 2020. The IPO had opened for subscription on July 14 in a price band of Rs 72-76 per share. It had closed on July 16. 

Zomato has said that 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 presence in 23 countries outside India. 

The company, backed by Jack Ma’s Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators. 

The Zomato IPO comprised a fresh issue of equity shares worth Rs 9,000 crore and an Offer For Sale (OFS) of Rs 375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com, according to information provided in Zomato’s Draft Red Herring Prospectus.