Zomato, the food delivery company, witnessed a brief surge in its share price, reaching a peak of Rs 105, representing a 2% increase after the opening bell on Monday. This marks the highest point for the company’s shares since February 2022. However, shareholders quickly capitalized on this price jump, and Zomato concluded the day at Rs 102.14, still trading 18% below its IPO price of Rs 126.
Zomato made its debut in the initial public offering (IPO) market in July 2021, with a share price range of Rs 72-76. Its shares started trading at Rs 115 and subsequently climbed to Rs 170 within a few weeks. Over the past year, the Gurugram-based company’s shares have been fluctuating between Rs 45 and Rs 70.
In recent developments, SoftBank has expressed its intention to divest its remaining stake in Zomato through the public market, influenced by the company’s share price fluctuations. Additionally, one of Zomato’s prominent investors, Tiger Global, exited the food delivery firm in August by selling its remaining shares for Rs 1,123.85 crore.
To refocus on its Indian operations, Zomato also decided to discontinue its businesses in Slovakia and Portugal. In August of this year, the company reported a first-time profit of Rs 2 crore in the first quarter of FY24, a significant turnaround from the Rs 186 crore loss recorded in the same quarter the previous year.
Zomato’s performance also exhibited robust growth, with its operating revenue surging by 71% to reach Rs 2,416 crore compared to Rs 1,414 crore in the first quarter of the preceding year. This notable performance was attributed to substantial growth in Zomato’s Hyperpure segment.
