Why Zomato shares fell to the lowest level today

zomato share Monday morning’s deals opened with a fall and crossed the lowest level of its life 50.05 each, set another record of the latter 47.50 within minutes of the stock market opening today.

Speaking on the reason for triggering the sell-off in Zomato shares, Anuj Gupta, Vice President – Research, IIFL Securities said, “Zomato shares listed on the Indian markets on 23rd July 2021, which means one year for the promoters, company lock-in. Employees, founders of the company, etc., are terminated today. As these shareholders constitute about 78 per cent of the total paid-up capital of Zomato Ltd, the food service shares are under selling pressure in this morning’s session.”

Shares of Zomato were listed on BSE and NSE on 23 July 2021 at a strong premium of over 51 per cent. After Bumper Listing, Zomato Shares Hit Life-time High 169 per share level breached in November 2021 1 trillion market valuation during the post-listing rally.

“The stock is expected to remain the bear’s preferred sell-off on the rise in the short to medium term as the stock was offered 76 per equity share in the primary markets almost a year ago. Hence, after the expiry of the one-year lock-in for the shareholders of Zomato, which accounts for about 78 per cent of the company’s total paid-up capital, will seek an exit on every jump in the stock, especially when it is around its offering price. Will happen. of 76 per level, said Avinash Gorakshakar, Head of Research, Profitmart Securities.

However, Zomato shares are in the heat of sell-off after climbing to their lifetime highs and have remained at new 52-week lows for the past few sessions.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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