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Zomato is Smoking with Shares Listing at Rs.116 on NSE

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Something smells good and familiar and that is of course, Zomato, the food tech unicorn which broke the boundary of the stock market with shares listing at Rs.116 on the National Stock Exchange (NSE), serving a 52.63 percent spicy in its issue price of Rs.76 per share.

Whereas on the Bombay Stock Exchange (BSE) the food tech unicorn served a listing price of Rs.115 with an extra topping of 51 percent on its stock price.

After its listing, the company’s stock got even more spiced up, reaching an upper circuit of 20 percent at 138 and up 82 percent from its BSE issue price.

Once it relished a great start at Dalal Street, the company’s capitalization rose beyond Rs.1 lakh crore, standing at Rs.1,08,067.35 crore, beating out IOC, BPCL, and Shree Cements.

Despite being cooked in simmer, it heated up a trading worth Rs.122.55 up Rs.7.55 or 6.57 per cent, a 60 per cent increase from issue price in the pot of BSE.

Inside the NSE pot it traded at 123.25 reaching a boiling point of 6.25 percent at $7.25.

Much earlier the food tech unicorn cooked up a Rs.4,196 crore from 186 anchor investors by adding 55.22 lakh shares at 76 each.

"With a blockbuster listing up by 73 percent, the IPO had a tremendous start. Zomato might be a gold mine for investors wanting to profit from this IPO. Furthermore, in light of the Coronavirus pandemic, the Zomato IPO and the excitement around it has likely bolstered investor confidence in the IPO market. However, we recommend that successful allotters book their full profit and wait a little before buying again”, he said

Later it served an IPO of Rs.9,375 crore, it drew more than 38 times its subscription and eligible institutional buyers were served 54.71 times, whereas high-net-worth individuals were served at 34.80 times. It set the IPO price at the upper end of the 72-76 price range.

As for the retailers investors its saved up quota which outbid 7.9 times.

CM Goenka Stock Brokers Director Kapil Goenka said, "Zomato has filed for its Initial Public Offering (IPO) with a pre-open volume of over 19 crore, making it one of the most anticipated and talked-about IPOs in recent times. Zomato is supported by Sanjiv Bhikchandani's Info Edge India Group, which has a market capitalization of over 1 lakh crore”.

"With a blockbuster listing up by 73 percent, the IPO had a tremendous start. Zomato might be a gold mine for investors wanting to profit from this IPO. Furthermore, in light of the Coronavirus pandemic, the Zomato IPO and the excitement around it has likely bolstered investor confidence in the IPO market. However, we recommend that successful allotters book their full profit and wait a little before buying again”, he said.

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