Zomato Share Price: The stock of food delivery chain company Zomato, which is listed in the stock market, is getting beaten up heavily. On the first trading day of the week, Zomato Share Price fell by 14.25 percent to a level of Rs 46, while on Friday the stock closed at Rs 53.65. Currently the stock is trading at Rs 47.10.
Why did Zomato’s stock fall sharply?
If we look at the reasons for the decline in Zomato’s stock, then two main reasons are being told for it. If you look at these reasons
1. Zomato has completed one year of being listed in the stock market. And the investors whose shares were in the lock-in period of one year are now free from this bond and can sell the shares if they want. Due to the non-performance of the stock, the market is afraid that these investors may sell, so the stock is seeing a decline.
2. On the other hand, Jubilant FoodWorks, which runs Domino’s and Dunkin Donuts retail chains in the country, may stop taking orders from Zomato and Swiggy’s online apps. This disclosure has been made by Jubilant Foodworks itself in a confidential filing submitted to the Competition Commission of India. That is, you may not find Domino’s Pizza on the online food delivery company Zomato app. Due to this, there is a big decline in the stock of Zomato.
zomato stock move
After listing on the stock exchanges, the stock of Zomato has come down by about 39.47 percent from its IPO price. The market capitalization of Zomato has slipped below Rs 37,000 crore. Let us tell you that Zomato’s stock has come down close to 73 percent from its highest level of Rs 169. When Zomato’s stock was at Rs 169, its market cap was close to Rs 1.33 lakh crore. That is, the market cap has come down by Rs 96,000 crore from this level.
IPO came in 2021
It is worth noting that in 2021, Zomato had raised Rs 9,375 crore from the market through IPO at Rs 76 per share. Zomato was listed on the stock exchange at a price of Rs 115. Institutional investors are continuously selling in Zomato’s stock. Domestic mutual funds have reduced their stake in the company. Foreign portfolio investors have also reduced their stake in Zomato, due to which the stock is under pressure.