Mumbai: exactly 30 years after the main IT Infosys service is listed on the domestic exchange, the food delivery service Pioneer Zomato enjoys a very successful list, which is being praised as a tribute to Indian Entrepreneurship.
Zomato watched a list of stars on Friday because stock jumped more than 53% over the price of the IPO RS 76 on his debut to quoted at Rs 115.
After reaching the highest intra-day RS 138 in BSE, the stock finally closed at RS 126, gave a market assessment company Rs 98,732 Crore, in front of traditional giants such as Tata Motors, M & M and Indian coal.
Zomato’s strong debut also proved many street experts and wrong doubts that questioned the new company pre-IPO assessment of Rs 60,000 Crore.
Even those who believe in the assessment of the company making losses later, expecting a list of increasing by 25% -30%.
On July 16, the company has closed the IPO offer process with more than 38 times oversubcriptions and sophisticated the listings at least four days until Friday.
S Ramesh, MD & CEO, Box Mahindra Capital Company, one of the merchant bankers who took the company’s public, said a strong market debut was a testimony of the fact that investors were willing to be a big bet on new technology companies that have the characteristics of a disturbing business model “.
“With growing internet penetration and the number of smartphone user bases increased a month by month, the entire personal digital ecosystem will enable wealth creation and further deepen our capital market in the coming years,” Ramesh added.
Veteran Market said in 1993, IPO Infosys was on the verge of being pulled until the market veteran clutch recognized the prospect of his future growth and redeem it.
The rest, as they say, is history.
Over the past 30 years, Infosys has been ranked among the top creators of wealth in the Indian market.
The success of Zomato will give trust to new technology companies planning to go public, along with their merchant bankers, to advance, said industrial players.
Company Paytm and Mobikwik Digital Payment Solutions, Online Auto Critchified Company Cartrade and E-commerce Startup Delhivery logistics have submitted an IPO.
There are also a number of companies that support other technologies in the final stage of the growth driven by where Zomato is a trial.
All of these companies tend to rush to the road to go public, they add.
In run-up to the IPO Zomato, there is a gap between the top fund managers and investors.
On the one hand, Nilesh Shah, MD, Mutual Fund box, support the recent trend of Indian new age companies that become public, and say the trend has the potential to attract global investors who have burned their hands in China.
On the other hand from the spectrum is a billionaire investor Rakesh Jhunjhunwala which has revealed skeptics about the assessment of new-age companies and said reversal in Zomato was limited to 10% -15% while the risk of decline was 50% -60%.
With a market assessment of around $ 13.3 billion, Zomato is one of the 50 most valuable companies in India.
On a global scale, it’s still small.
Meituan, Chinese giants who also have businesses other than food delivery services, worth $ 215 billion while US partners, Doordash are recently registered, worth $ 58 billion.
However, a recent Ambit capital report at Zomato said the company was at a sweet point compared to its global colleagues since it operates in a growing market.