Zomato’s market capitalisation at Rs 37,000 crore ($4.6 billion) is now below its last private valuation of $5.5 billion
Zomato
had a blockbuster listing on the Indian stock exchanges last year on July 23, and its shares surged by as much as 83% above the IPO price of Rs 76 at one point on the opening day.
Shares of the Gurugram-based firm listed at Rs 115 apiece on opening day —a premium of more than 50% over the issue price— giving the company a market cap of well over Rs 1 lakh crore.
Since then, there has been a steady decline in its share price, which the company has attributed to macroeconomic factors.
In January, when Zomato’s stock hit the lower circuit on BSE, in a message to employees founder and CEO Deepinder Goyal told employees that
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….”
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However, recent decisions by the company have also had a bearing on its stock price. After Zomato
announced the acquisition of the quick commerce platform Blinkit for Rs 4,447 crore ($568.16 million) in an all-stock deal, its stock price took a beating.
