Thursday, August 11, 2022
BusinessZomato Shares fell 23% in two days, investors lost Rs 1 lakh...

Zomato Shares fell 23% in two days, investors lost Rs 1 lakh crore in 8 months

Zomato touched its new low on Tuesday and the stock fell nearly 13 per cent to a low of Rs 41.20 on NSE.

Zomato Shares: Online food delivery company Zomato touched its new low on Mangalawar. On the NSE, the stock fell about 13 percent to the level of Rs 41.20, which is its lowest level ever. With this, the shares of Zomato have fallen by about 23 percent in the last two days.

Shares of Zomato closed at Rs 41.60, down 12.61 per cent at the close of trading on Tuesday. Earlier on Monday, its shares had fallen 10.5 per cent. In this way, the shares of Zomato have lost more than 23 percent in the last two days. Also, its price has come down 46% from its IPO price of Rs 76.

1.01 lakh crore loss to investors

The all-time high of Zomato’s shares is Rs 169.10, which it touched on 16 November 2021. At that time the market capitalization of Zomato’s shares had reached Rs 1.33 lakh crore. However, due to the continuous fall in the shares for the last few months, it came down to about Rs 31,870 thousand crore on Tuesday. In this way, since November 2021, Zomato’s investors have lost about 1.01 lakh crores so far.

Why did Zomato shares fall?

This drop in Zomato comes after the end of the one-year lock-in period for its initial investors. These investors held 78 per cent or about 613 crore shares of the company. The one-year lock-in period for these investors ended on Saturday, July 23. Since then, there has been a tremendous sell-off in the shares of Zomato.

What is the rule of lock in period?

The rule of lock-in period is applicable to companies which do not have promoters. Zomato is also one of such companies in which promoter holdings are zero. According to the rules, in a company that does not have promoters, the equity share capital held by the company before the IPO is locked for one year from the allotment of shares. During this time, these shareholders cannot sell a single share of their shares.

Jefferies hopes, Zomato’s stock will go up to Rs 100

Foreign brokerage firm Jefferies, giving a buy rating for the shares of Zomato, has fixed its target price at Rs 100. The brokerage firm says that there is a great opportunity to buy because of the bad sentiments. Jefferies expects that the profitability of this segment will improve, the industry structure will be better than before and the company will be able to save cash in the coming days.

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