Zomato Shares Fall To All-time Low As IPO Lock-up Period Expires After A Year Of Listing

Shares of Indian online food delivery and restaurant platform Zomato plunged to an all-time low today after the expiry of the lock-up period for investors who had stakes in the company prior to its IPO.

Zomato’s share price has dropped over 14% in Monday's trade, hitting its new all-time low.

The mandatory lock-in for promoters, employees and other shareholders, who bought the stock before the IPO ended on July 23, 2021, after the completion of one year of its listing.

Zomato shares drop to an all-time low

Following this, shares of Zomato dropped to Rs 46, its record low. It was trading at Rs 46.6 at 9.40 am. The scrip had settled at Rs 53.65 on Friday, as per an?ET report.

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According to the data from National Stock Exchange (NSE), 4.81 crore equity shares of Zomato worth Rs 234.75 crore had changed hands as of 9.40 am. On BSE, 60.86 lakh equity shares worth Rs 29.74 crore were traded.

If the company has no identifiable promoters, then its pre-IPO shares are under lock-in for 12 months, suggest SEBI rules. However, it has some exemptions, which are mentioned by the company in its DRHP.

More than 613 crore shares of Zomato were under lock-in from the date of allotment, that is July 23, 2021, which ended on Saturday. These shares constitute roughly about 78% of the shareholding of the company, the ET report mentioned.

Key shareholders, stakes and issue price

Key shareholders of the company, including Uber BV, InfoEdge, AntFin Singapore and Alipay, will be able to sell their stakes now. The issue price for the majority of these shareholders is below Rs 20, the data suggests.

At the time of writing this report, Zomato shares were at Rs 47.90, i.e. 10.72% down (as per NSE data). It remains to be seen where they end up after today's stock market session.

Zomato's shares have lost over 60% of their value from the all-time peak of around Rs 169.

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The total market cap of Zomato was hovering at about Rs 36,500 crore on Monday as against Rs 1.33 lakh crore at its peak. Investors have lost about Rs 96,600 crore of notional value, thanks to the sharp wealth erosion in the counter, as per ET.

Also Read:?Zomato CEO To Pledges Rs 700 Crore Towards Education Of Delivery Partners' Children

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