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Zomato shares fell as much as 7.3 percent in early trade on Tuesday, hitting a fresh all-time low of Rs 44.1 as the one-year lock-in period for pre-IPO shareholders ended on July 23.

On Tuesday, the shares hit an all-time low for the second consecutive day. The stock has gone down 20 percent in the last two trading sessions.

The trading volume of the stock was at 24.42 crore on Tuesday, 4.9 percent up from 23.28 crore in yesterday's session.

According to the norms, the equity share capital held by a company — that does not have promoters — is locked for one year from the date of allotment of shares. This effectively means the shareholders cannot sell any equity during the stated period.

Shares of the food delivery company were trading at Rs 44.2 per share, down 7.05 percent, on the BSE at the time of writing. The

The stock hit an all-time low of Rs 46 in the previous session. During the past few weeks, the shares of Zomato have been under pressure after the board approved the acquisition of Blinkit for Rs 4,447 crore in an all-stock deal. The stock has hit multiple 52-week lows in the past few weeks.

Jefferies maintained a 'buy' rating on the shares of Zomato, with a target price of Rs 100 per share. The brokerage house estimated that the company's enterprise value was higher than that of its peers, but its premium was justified given its longer growth runway.

Market expert Prakash Diwan believes the downside for Zomato is fairly limited from a business standpoint. He said, if one looks at the company's unit economics, they are far more superior to what they were when they came up with the IPO.

"But since it's too small at this point or too late the day to improve the price, you'll probably have to give it much more time," Diwan told CNBC-TV18. "So, if you have patience, probably you will see those Rs 70-75 levels at some point in time on Zomato again."

The food delivery company was listed on BSE and NSE on July 23, 2021, at a strong premium of over 51 percent.

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First Published:Jul 26, 2022 10:43 AM IST