It has been a bumper listing for Zomato with the stock opening 58 percent higher versus the issue price. Minutes after listing, Zomato's market cap crossed Rs 1 lakh crore as the price surged to Rs 132 from the listing price of Rs 115. Thus, the food delivery app company has, in the process, become the first unicorn startup to list and list with a stellar premium on the bourses.

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Raj Balakrishnan, Head-India Investment Banking of Bank of America discussed about the overall demand for these new age companies.

Bank of America sees massive growth in the entire new economy ecosystem in India. It is being driven by the growth of telecom penetration and an increasing section of society is starting to use these services and realize that they make a difference in terms of how we live, how we operate and how we consume.

"This story is something which is at very early days yet and has a long way to play out. Hopefully, we will see many more successful listings in this space over the next few quarters,” Balakrishnan stated.

“Fundamentally, Zomato is at the cusp of transformation of consumption patterns in the Indian economy and the valuations clearly reflect that,” he said.

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According to him, this is the first real-tech listing in India.

“If you look at the overall investable universe, you have got about USD 350 billion of assets, which FPIs and domestic mutual funds (MFs) have in the Indian market and under half a percent of that is invested in real-tech. So there is massive underweight in the real-tech space and the public market investors have very little exposure to that. So that creates a massive amount of pent-up demand and people are looking to play that through Zomato,” he shared.

“If you look at the broader consumer stories in India, they trade at higher multiples than their international peers. Hence, I am not surprised that Zomato listed at a level which is at higher multiple than the global companies in the similar space,” he added.

For the full interview, watch the accompanying video.

(Edited by : Abhishek Jha)