On the opening bell, its share price was down at a new 52-week low of Rs 84.1 per share.
Listed in July 2021, Zomato shares were trading at 1.86% lower at Rs89.70 inching closer to its IPO issue price of Rs 76.
On Monday, the shares of Zomato dropped below Rs 100 for the first time since its listing.
The company’s market capitalisation fell below the Rs 1 lakh crore-mark last week and on Tuesday morning it was at Rs 72,023.22 crore, BSE data showed.
On Monday, in a message to employees, CEO Deepinder Goyal said
valuations can swing and Zomato had no control over this. “This is the thing about stock markets and public companies – valuations can swing massively without any change in the fundamentals of the business depending on macro-economic factors like inflation, interest rates etc … we had no control on our valuation going up from $8 billion in the IPO to $17 billion at our peak, and vice versa now…,” said Goyal in a note.
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He added that he has been waiting for a bear market. “Also, let me tell you a secret … I have been waiting for a bear market for a long time now – that is when funding dries up for everyone, and companies with the most solid teams and execution rise to the top,” added Goyal.
