The shares of food delivery company Zomato slumped 14.25% on the Bombay Stock Exchange to hit a record low of Rs 46 during Monday’s intra-day trading as the lock-in period for the stock got over.
During the lock-in period, shareholders are barred from selling their stocks bought at the initial public offering.
Zomato had made a stellar debut in the markets on July 23 last year, listing at a share price of Rs 116 on the National Stock Exchange – a 52.63% premium over its issue price of Rs 76. However, since then the value of its shares has fallen over 60%, according to NDTV.
On Monday, the company’s shares touched its all-time low of Rs 46 a piece but bounced back to close at 47.55 on the BSE – a drop of 6.10 points, or 11.09%, from the previous closing mark.
“Investors are concerned about the sell-off through employees and promoters,” said Prashanth Tapse, the vice president of research at Mehta Equities, according to NDTV.
Tapse added that investors are not comfortable with Zomato acquiring grocery delivery startup Blinkit. Since Zomato announced the Blinkit acquisition on June 24, its shares have fallen nearly 30%.
Analysts say the food delivery company needs to invest more money into Blinkit as its rivals in the quick-commerce sector such as Swiggy, Reliance Industries-backed Dunzo, Tata-backed BigBasket and Zepto the grow at a rapid clip.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!