Zomato Makes History, Market-Cap Crosses Rs 1-Trillion Mark – Free PDF Download

What has happened?

• Zomato scripted history on Friday by becoming India’s first unicorn to debut on the stock exchanges.
• The scrip got listed at Rs 115 on BSE, a 51.32% premium to the issue price of Rs 76.
• On NSE, the stock made a debut at Rs 116, up 52.63%.

Top 100 company

• With its mega listing, Zomato entered the elite club of Top 100 listed companies in value terms, with a market capitalisation of over Rs 1 lakh crore.
• At issue price, its market cap stood nearly at Rs 65,000 crore; 100th member’s current m-cap is Rs 44,685.37 crore.

oversubscription

• The Rs 9,375 crore issue had received bids for Rs 2.13 lakh crore worth shares which were the third-highest in Indian capital history.
• Given the strong demand for the issue, analysts were largely expecting the IPO to list at a 25-30% premium.

About zomato

• A leading online food aggregator, Zomato offers a platform for connecting consumers with restaurants.
• On average, 3.21 crore monthly active users (MAUs) visited the Zomato platform in FY21.
• The company has a presence in 525 cities and has 389,932 active restaurant listings.
• It also had 1,69,802 active delivery partners as of March 31.
• Other than India, the company has footprints across 23 countries.
• Despite Zomato gaining significant scale in terms of revenue — clocking 62 per cent annual growth over FY18-FY21 — the company continues to incur losses.

Significance of Zomato’s listing

• Zomato’s IPO will usher listings of a significant number of digital technology companies in the coming quarter.
• It will naturally give a solid boost to entrepreneurship, particularly the Startup India movement, enabling wealth creation and deepening our capital markets.
• Digital companies such as Paytm, Policybazaar and Mobikwik are some of the names that have already filed papers for IPOs following in Zomato’s footsteps.

Q) Which of the following are included under Money market?

1. Treasury bills
2. Cash management bills
3. Commercial papers
4. All of the above

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