Zomato plummets 14%, hits record low after lock-in for 613 crore shares ends
Zomato's shares have lost about 72 per cent of their value from the all-time peak of Rs 169.10, whereas the stock is trading about 38 per cent below its issue price of Rs 76.
By Pawan Nahar, ETMarkets.com | Updated:
Agencies
New Delhi: Food delivery startup Zomato plunged over 14 per cent in Monday's trade, hitting its new all-time lows as the mandatory lock-in for the pre-IPO shares ended.
The mandatory lock-in for promoters, employees and other shareholders, who bought the stock before the IPO ended on July 23, 2021, after the completion of one year of its listing.
Following this, shares of Zomato dropped to Rs 46, its record low. It was trading at Rs 46.6 at 9.40 am. The scrip had settled at Rs 53.65 on Friday.
According to the data from National Stock Exchange (NSE), 4.81 crore equity shares of Zomato worth Rs 234.75 crore had changed hands as of 9.40 am. On BSE, 60.86 lakh equity shares worth Rs 29.74 crore were traded.
If the company has no identifiable promoters, then its pre-IPO shares are under lock-in for 12 months, suggest Sebi rules. However, it has some exemptions, which are mentioned by the company in its DRHP.
Key shareholders of the company -- Uber BV, InfoEdge, AntFin Singapore and Alipay -- will be able to sell their stakes now. The issue price for the majority of these shareholders is below Rs 20, the data suggests.
Incorporated in 2010, Zomato is one of the leading online food service platforms in India with B2C offerings such as food delivery and dining-out services where customers can search and discover restaurants, order food delivery, and book a table.
Zomato's shares have lost about 72 per cent of their value from the all-time peak of Rs 169.10, whereas the stock is trading about 38 per cent below its issue price of Rs 76.
The mandatory lock-in for promoters, employees and other shareholders, who bought the stock before the IPO ended on July 23, 2021, after the completion of one year of its listing.
Following this, shares of Zomato dropped to Rs 46, its record low. It was trading at Rs 46.6 at 9.40 am. The scrip had settled at Rs 53.65 on Friday.
According to the data from National Stock Exchange (NSE), 4.81 crore equity shares of Zomato worth Rs 234.75 crore had changed hands as of 9.40 am. On BSE, 60.86 lakh equity shares worth Rs 29.74 crore were traded.
If the company has no identifiable promoters, then its pre-IPO shares are under lock-in for 12 months, suggest Sebi rules. However, it has some exemptions, which are mentioned by the company in its DRHP.
ADVERTISEMENT
More than 613 crore shares of Zomato were under lock-in from the date of allotment, that is July 23, 2021, which ended on Saturday. These shares constitute roughly about 78 per cent of the shareholding of the company.Key shareholders of the company -- Uber BV, InfoEdge, AntFin Singapore and Alipay -- will be able to sell their stakes now. The issue price for the majority of these shareholders is below Rs 20, the data suggests.
Incorporated in 2010, Zomato is one of the leading online food service platforms in India with B2C offerings such as food delivery and dining-out services where customers can search and discover restaurants, order food delivery, and book a table.
Zomato's shares have lost about 72 per cent of their value from the all-time peak of Rs 169.10, whereas the stock is trading about 38 per cent below its issue price of Rs 76.
ADVERTISEMENT
The total market cap of Zomato was hovering at about Rs 36,500 crore on Monday as against Rs 1.33 lakh crore at its peak. Investors have lost about Rs 96,600 crore of notional value, thanks to the sharp wealth erosion in the counter.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
