After an overwhelming IPO, Zomato shares gainup to 80% on the listing day

after an overwhelming ipo zomato shares gain up to 80 on the listing day

Just before the listing, Zomato's founder Deepinder Goyal tweeted, "The future looks exciting. I don't know whether we will succeed or fail - we will surely, like always, give it our best."

The IPO of the Indian food delivery app, Zomato, has been very ambitious as it is the first Unicorn in India to get listed on the Indian Stock Exchange. The Zomato IPO was subscribed 38.25 times in total. The public issue subscribed 7.45 times in the retail category, while 51.79 times in Qualified Institutional, and 32.96 times in the Non-Institutional category. The issue price for bidding was ₹76, which soared up to ₹138 on the opening day, giving 80% gains to the IPO bidders.

The stellar performance reflected strong investor interest in internet-based start-ups that have done well during the pandemic. However, prior to listing, some analysts had raised concerns about the high valuation of the loss-making business. Zomato's share offering last week drew bids worth $46.3 billion as it was more than 38 times oversubscribed, with big institutional investors also placing major bets.

Just before the listing, Zomato's founder Deepinder Goyal tweeted, "The future looks exciting. I don't know whether we will succeed or fail - we will surely, like always, give it our best." The home-grown food delivery platform, which was launched in 2008, operates in about 525 cities across India and partners with almost 390,000 restaurants. Zomato is yet to turn profitable. However, this new-age digital platform offers strong growth potential, which at present is evolving on the back of favorable macroeconomics, changing demographic profile, rising adoption of tech infrastructure.