Shares of food delivery start-up Zomato soar on debut in India
Shares of Zomato Ltd., India’s response to DoorDash Inc., have skyrocketed during their trading debut, delivering a performance that will likely boost confidence in other Indian startups that are ready to tap into the actions.
In the opening minutes of official trading on Friday, shares of the food delivery group have gained 82% to INR 138 from the initial public offering price of INR 76 per share.
Zomato raised nearly 94 billion rupees ($ 1.26 billion), selling 1.23 billion shares at the top of its indicative price range INR72-INR76.
Investors last week placed orders worth 38 times the shares offered by Zomato, indicating that those who couldn’t buy shares during the IPO were testing their luck in the secondary market.
Some market watchers say that the Indian tech space has a lot of room to grow as consumption evolves online. Earlier stage investors invested around $ 16 billion in Indian startups this year, creating 16 new unicorns – young private companies valued at $ 1 billion or more – according to data firm Venture Intelligence.
Last week, the operator of the digital finance app Paytm, One97 Communications Ltd., filed an IPO prospectus for what is set to be India’s largest IPO in terms of local currency. .
The group offers services such as a mobile wallet, loans and stock trading, and is backed by Chinese fintech giant Jack Ma, Ant Group Co. One97 aims to issue new and existing shares of worth up to INR 166 billion.
Other ongoing IPOs include digital payment platform One MobiKwik Systems Ltd. and logistics and supply chain service provider Delhivery Pvt.
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