Zomato made a stellar debut on bourses on Friday, listing at Rs 116 on the NSE, garnering a 52.63 percent premium over its issue price of Rs 76 per share.

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The stock made its debut at Rs 115, reflecting a huge gain of 51.31 percent against the issue price on the BSE.

Zomato’s initial public offering (IPO) last week ended with a bumper 38 times subscription.

The IPO had opened for subscription on July 14, with a price band of Rs 72-76 per share. It closed on July 16. The company, backed by Jack Ma’s Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.

Here's what experts say on its bumper debut:

Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

"The Zomato IPO received a great response from investors and was subscribed ~ 38 times which translated to a blockbuster listing for the stock. We had given a ‘subscribe’ rating to the IPO. Given a strong delivery network, high barriers to entry, expected turnaround, and significant growth opportunities in tier-II and tier-III cities we continue to remain positive on the stock from a long-term perspective. Post the stellar listing, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits."

Prashant Khemka, founder of White Oak Capital Management

"The euphoria is well justified. It is a very historical moment for the Indian equity market. It is a very exciting moment and hopefully bodes well for times to come for many such more new listings of new-age technology companies, this would open the doors for those to list going forward.”

Raj Balakrishnan, Head-India Investment Banking of Bank of America

"More fundamentally, Zomato is at the cusp of the transformation of consumption patterns in the Indian economy and the valuations reflect that. 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 is listed at a level that is at a higher multiple than the global companies in a similar space."

Gurmeet Chadha, Co-Founder & CEO at Complete Circle Consultants

"I want to play this entire tech space in a bucket where you take 8-9 bets - there is Zomato, there is Tanla, there is Nykaa, PolicyBazaar. One-two will do 10-20 times."

Dinshaw Irani, CIO of Helios Capital India

"It is one of the hottest issuances, we were there in the IPO, we didn’t pick up fresh in the markets."

Subramanya SV, CEO & Co-Founder, Fisdom

“Zomato going public and the stellar listing is a landmark event for the Indian startups and capital markets. It will be the beginning of a new era where the capital markets will welcome new age and innovative companies to raise capital and share wealth. This will also serve as an inspiration for many other companies to list in India then going abroad. There will be many more IPOs in the next few months/ years from home grown consumer internet and technology companies. I believe there is sufficient investor appetite for all of these IPOs.”

First Published:Jul 23, 2021 12:17 PM IST