Zomato to list on exchanges today

Zomato, one of the leading food services platforms in India in terms of value of food sold, will list on the bourses on July 23. Experts suggest the stock could list at a price of more than Rs 100 per share, i.e. more than 30 percent premium over final offer price of Rs 76.

Despite the higher valuation, analysts expect a strong listing on the back of significant jump in grey market premium in last few days, positive market sentiment, earnings surprise by Jubilant Foodworks in Q1FY22, and the first mover advantage in the food delivery segment along with expected financial improvement.

Zomato shares traded at a premium of Rs 20-22 in the grey market, the unofficial platform for trading in IPO shares, the data available on IPO Watch and IPO Central showed. The grey market premium opens at the time of price band announcement, till the listing of shares on the bourses.

This resulted into a trading price of Rs 96-98 in the grey market, a 26-29 percent premium over issue price of Rs 76 per share.