Business

Flop Show: The company that brought IPO last year did a split, in 6 months investors have drowned 88000 crores

Photo:FILE

Zomato

Flop Show: Amidst the increasing interest of common people in the stock market, there is a competition among companies to bring IPO. At present, LIC IPO is the most talked about. Often people also invest money in IPO for big profits. But food delivery company Zomato, which brought IPO last year, has divided investors. In the last 6 months, the company’s stock has lost 65 percent, while Rs 87,800 crore has been cleared of investors who have invested in the company’s shares.

Friday was also Black Friday for Zomato. On Friday, the company’s stock fell to a 52-week low of Rs 57.65. Its stock recorded a sharp decline of 6 percent during the opening hours of the market. Currently, the Zomato share price on BSE is Rs 58.30.

Lowest capitalization after listing

On Friday, Zomato’s market capitalization declined to Rs 45,381.69 crore, its lowest since listing. This is Rs 87,732.69 crore less than its peak cap of Rs 1,33,144.38 crore in November. Zomato stock touched an all-time high of Rs 169.10 in November 2021.

Superhit in IPO as soon as it comes in the market

Zomato’s IPO came in July 2021. The company had raised Rs 9,375 crore from this IPO. But as tech stocks started falling in 2021, the stock started declining. Institutional investors reduced their stake in Zomato in the March 2022 quarter. Domestic mutual funds sold 83 million equity shares, or 1.1 per cent, to hold 2.82 per cent stake in the company.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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