Zomato Share Price Falls to a Record Low
On July 25, Zomato's shares dropped more than 14% in the opening hour of trading, wiping off almost Rs. 1,000 crore in investor wealth.
The stock dropped 11.4% from its previous level to close at a new low of Rs 47.55. Since its listing, this was the second-worst single-day sell-off.
Zomato now has a market value of ₹ 36,600 crore ($4.58 billion), compared with ₹ 1.29 lakh crore at its all-time high in November.
After a stellar stock market debut on July 23 of last year, Zomato's valuation has dropped by more than 60%.
When the markets closed today, the price of Zomato stock was Rs.46.80, but Zomato was trending heavily on Twitter thanks to memes, so the drop did not occur there.
Usually, after the lock-in period for IPO anchor investors expires, selling pressure emerges. After the one-year lock-in period has ended, shares of corporations rarely plunge, nevertheless.
Shares of Zomato tanked 14% in the first hour of trading today (July 25), wiping out nearly ₹1,000 crore of investor wealth in a flash.
Industry insiders claimed that the trading behaviour of Zomato shares, whose one-year lock-in is about to expire, might serve as an example for future startups.
Within months of the Zomato IPO, several start-ups like Policy Bazaar, Nykaa, and Paytm had gone public. Similar to Zomato, Policy Bazaar and Paytm have a diversified shareholding.
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