Shares of food delivery company Zomato fell 14.3% on Monday to a record low after the lockdown period ended for investors who held stakes in the company prior to the initial public offering.
The shares fell to Rs 46.15 per share, giving the company a market capitalization of $4.5 billion. below the $13.2 billion estimate. it happened on his debut day a year ago.
zomato raised $1.3 billion before listing from a host of investors including Tiger Global, Fidelity, the Singapore Government, Canada Pension Fund, T. Rowe Price, Morgan Stanley and Steadview. Investors subscribed to the shares at 76 rupees.
The company’s shares, which have lost more than 60% of their value since listing last year, have been under additional pressure lately following Zomato’s release. proposed acquisition of instant delivery firm Blinkit in a deal that many analysts see as overpriced and riddled with conflicts of interest.
Zomato competes with Swiggy, which has raised capital in the round from investors including Invesco on $10.7 billion valuation earlier this year.
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Credit: techcrunch.com /