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BusinessBig Fall Zomato 78% Shares lock-in period of 613 crore shares is...

Big Fall Zomato 78% Shares lock-in period of 613 crore shares is ending tomorrow

The one-year lock-in period ends on Saturday 23 July for the promoters, employees and early investors of Zomato, who hold about 78% stake in the company.

The lock-in period of about 613 crore or 78 percent shares of online food delivery company Zomato is going to end next week. Analysts predict that due to this, Zomato shares may see heavy selling pressure next week. Sriram Subramaniam, founder and MD, proxy advisory firm InGovern, said, “Zomato has no promoters and all are shareholders.

This includes the founders of Zomato and they all hold 77.87 per cent stake in Zomato. There was a lock-in period of one year on the shares which ends on July 23. This means that now they can sell the shares at any time of their mind and they do not need to give any kind of disclosure for this. A big reversal can be seen in the price of the shares next week.

“Even when the one-month lock-in period for anchor investors was over, the stock saw a huge 8 per cent fall in a single day,” he recalled. Meanwhile, shares of Zomato closed 0.28% per cent lower at Rs 53.35 on the NSE on Friday. Also read- Yes Bank shares climbed 18% in the last one month, know which news is coming from the boom Zomato made a grand entry in the stock market on 23 July last year.

The company had launched its initial public offering (IPO) at Rs 76 per share, which was listed on BSE at Rs 115 with a premium of over 51 per cent. Later on, Zomato crossed the market capitalization mark of Rs 1 lakh crore and its shares went all-time high of Rs 169 on BSE.

G Chokkalingam, Equinomics Research & Advisory, said, “It is important for retail investors to see at what price PE/VC investors have invested in the company. If the cost of their purchase of Zomato shares is slightly below its current market price, even less, he will focus on selling his stake in this bearish mood to recover profits.”

“For many investors, the cost of acquisition of Zomato shares is much lower than its current market price and early investors of the company are seeing good profits at this level as well. So, I think after July 23,” he said. There is a high chance of Zomato shares going down.”

One of the earliest investors of Zomato is Info Edge. The Sanjeev Bikhchandani-led company had also sold some of its stake in Zomato’s IPO and made a profit of Rs 357 crore at that time. However, he still holds 15.18 per cent stake in this company, which is worth Rs 6,330 crore.

According to Zomato’s IPO document, Info Edge had invested in Zomato at an average cost of Rs 1.16. However, Zomato did not give information about the average cost of other large shareholders in this document. Other early investors in Zomato include Alipay (7.1%), Ant Financial (6.99%), Tiger Global (5.11%), Sequoia Capital (5.10%) and TeamSec (3.11%).

Apart from these, Zomato’s shareholders also include Uber and Delivery Hero. Experts say investors should watch how Uber and Delivery Hero react after the end of their lock-in period. This is because both these companies are under pressure due to heavy selling in global stock markets and it might consider selling its stake in Zomato. Where Uber holds 7.78 per cent stake in Zomato. On the other hand, foodtech company Delivery Hero holds 1.36 percent stake in Zomato.

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Updated on August 10, 2022 9:57 pm