{"id":6444,"date":"2022-08-10T05:56:11","date_gmt":"2022-08-10T05:56:11","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=6444"},"modified":"2025-11-07T11:32:56","modified_gmt":"2025-11-07T06:02:56","slug":"zomato-share-price-in-stock-market","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/zomato-share-price-in-stock-market\/","title":{"rendered":"Zomato Share Price in Stock Market After Blinkit Deal"},"content":{"rendered":"
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Zomato Share Price in Stock Market<\/a> After The Blinkit Deal, Q1FY23 Result, And Eternal Announcement<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n

A stock market is an unpredictable place in the short term. More so when it comes to defining how an individual stock will move. Take Zomato, a food tech giant listed on the Indian stock market<\/a>.<\/p>\n\n\n\n

Zomato share price in stock market has moved in all directions since its initial public offering (IPO)<\/a>. It reached an all-time high of Rs. 169 in November 2021 and a low of Rs. 40.6 on 27 July 2022.<\/p>\n\n\n\n

In five trading sessions between July 27 and August 2, the stock increased 27% after tumbling 33% between July 22 and 27. Many factors are causing these drastic movements in the Zomato share price. Let us look at them in this article.<\/p>\n\n\n\n

The Zomato Blinkit Merger<\/strong><\/h2>\n\n\n\n

Usually, merger and acquisition announcements send share prices of the involved entities through the roof. However, the Zomato-Blinkit merger was ill-fated for the listed food-delivery platform. Zomato shareholders approved the Rs.4,447 crore all stock-deal to take over Blinkit in June 2022. Blinkit, formerly known as Grofers, is a quick commerce platform that delivers groceries and more.<\/strong><\/p>\n\n\n\n

What is Quick Commerce?<\/strong><\/p>\n\n\n\n

A step ahead of e-commerce and home delivery, quick commerce refers to delivering orders in under 30 minutes. Zepto, Dunzo, Blinkit, and Swiggy Instamart are startups leading the quick commerce industry in India today.<\/p>\n\n\n\n

Analysts criticized the deal, stating it would delay Zomato’s profitability plan. Because Zomato would have to make significant cash investments<\/a> to ramp up Blinkit’s business operations initially. The result\u2026<\/p>\n\n\n\n

Zomato-Blinkit deal sent the stock prices tumbling.<\/p>\n\n\n\n

Zomato’s Lock-in Period Expired for Pre-IPO Investors<\/strong><\/h3>\n\n\n\n

The lock-in period for Zomato’s pre-IPO shares ended on July 23, 2022. As a result, the company’s stock price<\/a> nosedived 12% in a single day. This rule applies to companies with no promoter holding in the shareholding mix. Zomato is such a company. The chart below shows Zomato’s shareholding mix as of Q1FY23.<\/p>\n\n\n\n

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According to the rule, investors of companies with zero promoter holding must hold the pre-IPO shares for one year from the shares allotment date. After that, these investors can’t sell their holdings before the lock-in period ends.<\/p>\n\n\n\n

Jefferies, Credit Suisse, and Kotak Still Positive on Zomato<\/strong><\/h3>\n\n\n\n

The recent correction in Zomato stock divided the d-street and global<\/a> analysts. While several domestic analysts sounded concerned and refrained from fresh buying in the stock, international brokerage firm Jeffries remained positive on Zomato’s share price. The firm believes the new-age company<\/a> is improving its unit economics. As a result, Jeffries has kept a target price of Rs. 100, i.e. an upside potential of 45% from the closing price of Aug 3, 2022, as it remained upbeat on Zomato’s prospects.<\/p>\n\n\n\n

Soon another international brokerage Credit Suisse<\/strong> and a domestic brokerage Kotak Institutional Equities (KEI),<\/strong> joined Jeffries. While Kotak upgraded Zomato to buy with a target price of Rs. 79, Credit Suisse maintained its rating as ‘outperform’, citing Zomato’s profitability in the picture.<\/p>\n\n\n\n

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