Shares of Indian food delivery start-up Zomato jumped more than 70% in their stock market debut Friday.
The initial public offering price was set at 76 rupees a share and the stock opened at 116 rupees — a 52.63% premium. That valued the company at about 910 billion rupees ($12.2 billion).
As of 12:55 p.m. HK/SIN, Zomato shares traded at 130.7 rupees, slightly off an earlier session high of 138.90 rupees.
The company had filed to go public in April, saying it plans to use the proceeds to fund growth, which may include mergers or takeovers.
Reuters reported that last week Zomato's IPO drew $46.3 billion in bids and was more than 38 times oversubscribed, with big institutional investors placing major bets.
Zomato, along with rival start-up Swiggy, dominates India's $4.2 billion food delivery market, which is highly competitive but also very fragmented.
In its prospectus, Zomato said it faces intense competition from chain restaurants that have their own online ordering platforms. Other competitors include cloud kitchens and restaurants that operate their own delivery fleets, as well as offline ordering done by phone.
Zomato is also the first of a slate of prominent Indian start-ups to go public. Payments giant Paytm has filed for a $2.2 billion IPO while others like e-commerce firm Flipkart and ride-hailing start-up Ola are exploring listing options.
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July 23, 2021 at 12:40PM
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Shares of Indian food delivery start-up Zomato jump over 70% in market debut - CNBC
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