Zomato Closes Above Listing Price For The First Time In Over 22 Months

Shares of foodtech major Zomato jumped 8.3% on the BSE on Friday (November 3), ending today’s trading session at INR 116.4, above the company’s listing price of INR 115 for the first time ever since January 20, 2022.

Zomato listed on the BSE and NSE in July 2021 at INR 115 and INR 116, respectively, at a premium of about 53% to its IPO price of INR 76. The stock started rallying in the next few months and reached an all-time high of INR 169.1 in November of that year. Post that, the stock started nosediving and slipped below the listing price in January last year.

While shares of Zomato have rallied sharply since April this year on the back of its improving bottom line, it touched a level above its listing price today following its Q2 FY24 results.

Even on the NSE, Zomato ended today’s trading session at INR 117.9, above its listing price.

The stock also touched a fresh 52-week high during the intraday trading at INR 120 by jumping about 12% on the BSE.

Meanwhile, Zomato reported its second consecutive profitable quarter and posted a profit after tax of INR 36 Cr in Q2 FY24. 

The company witnessed strong growth across verticals and its quick commerce business Blinkit turned contribution positive for the first time since its acquisition.

The company had reported its maiden profitable quarter at INR 2 Cr in Q1.

The broader market, too, gained today but market participants remained cautious due to worries over high inflation rates globally and the ongoing war in the Middle East.