Mumbai: The share price of Zomato hit an all-time low of Rs. 46 today after the completion of one year IPO lock-in period for shareholders, promoters and others.
The stock witnessed a dip of 14.3 percent. However, soon it recovered and reached Rs. 47.95 at 11:50 am.
Many market experts believe that the food chain platform is likely to witness a further dip in share price due to more selling pressure in the current week.
Zomato IPO
The IPO of Zomato that was issued last year was subscribed over 38 times at the end of the final day of the issue.
On the Bombay Stock Exchange (BSE), it got listed at Rs. 115 a share. From there, it reached Rs. 169 a share which was the all-time high of the share.
Reasons for decline in Zomato share price
Due to low valuation and tough competition from other food chain platforms including Swiggy, the share price of Zomato started declining in January 2022.
Many market experts had also recommended investors to maintain the selling position of the stock.
Zomato
Zomato which was founded by Deepinder Goyal and Pankaj Chaddah is a restaurant aggregator and food delivery company.
The service of the company is available in various countries. In India, the service is available in many cities including Hyderabad, New Delhi, Mumbai, Bengaluru, Pune, and Ahmedabad.