Zomato IPO lists with a bang and stays on top

There was an urgency about the Zomato business model. Their food delivery model was based on quick delivery and adherence to the timelines. Not surprisingly, when it came to the Zomato listing, the company took an unprecedented decision to list the company 4 days ahead of schedule; on 23 July instead of 27 July. 

If ever there was a statement on timely delivery, this was it. That was on a lighter vein, because even the actual listing and trading on Day-1 was equally eventful. Now, for the listing story of Zomato.

With the solid response to the issue and a surfeit of demand from QIBs, it was apparent that Zomato IPO would be priced at the upper end of the band at Rs.76. However, against the discovered IPO price of Rs.76, Zomato IPO listed at Rs.115 on the BSE and Rs.116 on NSE. The listing price was at a premium of 52% over the IPO price.

On the NSE, Zomato IPO did come under pressure after scaling higher levels and closed at Rs.125.30, still a premium of 64.87% over the issue price and above the listing price on the first day of trading.

On the BSE, the stock closed at Rs.125.85, a premium of 65.59% over the IPO issue price and again well above the opening price on Day-1. It may be recollected that the Zomato IPO had been oversubscribed 38.4 times with strong demand from QIBs.

On Day-1 of listing, Zomato touched a high of Rs.138.90 on the NSE and a low of Rs.115. On Day-1, the Zomato stock traded a total of 69.49 crore shares on NSE amounting to value of Rs.8,625 crore. On the NSE, Zomato was the top stock on 23 July in terms of value traded and the second highest on volumes traded.

On the BSE, Zomato touched a high of Rs.138 and a low of Rs.114. On the first day, the Zomato stock traded a total of 4.52 crore shares on BSE amounting to value of Rs.576 crore. During the day, Zomato had crossed market capitalization landmark of Rs.100,000 crore but closed the day with market cap of Rs.98,732 crore. However, its free float market cap at the close of Day-1 is just Rs.8,886 crore.