How Rakesh Jhunjhunwala's Warning About Zomato Stock Turned Out To Be True
India's big bull Rakesh Jhunjhunwala had warned investors about Zomato last year in October 2021. He had said, "If I say today that don't buy Zomato share, people will call me a fool". "We will see after five years," he had hinted about the excess in market getting corrected when its time will come.
It has been a bloodbath for Zomato¡¯s stock this week. It reached an all-time low of Rs 40.60 on NSE and Rs 40.55 on BSE yesterday.
BharatPe founder and Shark Tank India¡¯s Ashneer Grover took a dig at Zomato a couple of days ago by tweeting that Zomato stock would have reached Rs 450 had it merged it with Swiggy instead of Blinkit (ex-Grofers).
But much before this downfall of Zomato despite the stellar debut last year after IPO, ace investor Rakesh Jhunjhunwala had warned about all this in October 2021.
Often referred to as the 'Warren Buffett of India', Jhunjhunwala had warned about Zomato at the India Today conclave last year. In a viral video, the ace investor mentioned, "Time will come when excess in the market will correct because excesses in the markets are pro to correction."
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The big bull had warned investors about the future of the Zomato stock. He said:
"If I say today that don't buy Zomato share, people will call me a fool".
"We will see after five years," Jhujhunwala had said, referring to the exuberance surrounding the Zomato stock, as per a Business Today report. Unfortunately for Zomato, big bull Jhunjhunwala's prediction has not only come true but it did so much earlier than he had anticipated.
Showing signs of some recovery, Zomato¡¯s stock ended at more than 3% higher today, at Rs 45.50 on NSE and Rs 45.65 on BSE. The stock hit an all-time high of Rs 169 in November 2021.
Catch Rakesh Jhunjhunwala's view on Unitech & HFCL as he mentions them in the same breath as Zomato. #BusinessToday #RJ #RakeshJhunjhunwala #ABetterNormal |@IndiaToday @AabhaBakaya pic.twitter.com/3fe0epmP4h
¡ª Business Today (@business_today) October 9, 2021
Also Read: Zomato CEO Pledges Rs 700 Crore Towards Education Of Delivery Partners' Children
Zomato Allots Shares To Employees At Re 1
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Yesterday, it was also revealed that Zomato has allotted nearly 4.66 crore shares to its employees from its employee stock option plan (ESOP) pool at the face value of Re 1.
Zomato said in its note: "We wish to inform you that the nomination and remuneration committee of the board of directors of the company at its meeting held on July 25, 2022, has approved the allotment of 4,65,51,600 equity shares having a face value of INR 1 each, as fully paid-up, to identified employees of the company and its subsidiaries upon exercise of vested options" as per an IANS report.
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