A day before its debut in stock market, Zomato's app and website crashed
New Delhi, July 22: In what comes as a recent development, Zomato's mobile application and its website have crashed, just a day before its listing on the Bombay Stock Exchange (BSE). It can be seen that Zomato is an Indian multinational restaurant aggregator and food delivery company.
Earlier, Zomato's IPO was launched and it generated interest within the investor community and beyond. Market experts had a mixed opinion on the prospects of Zomato's stocks. Most of it can be attributed to the fact that the company is still incurring huge losses and it is predicted that the downward momentum will continue given its 'significant investments' to prime pump its growing business.
"Effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of ''B'' Group of Securities," the BSE said in a notice.
The company fixed the price at the higher end of the offer band of Rs 72-76 for 71.92 crore shares. The IPO of Zomato was India''s biggest initial share sale offer since March 2020. While qualified institutional buyers or QIBs bid almost 52 times the quota reserved for them, non-institutional investors sought 640 crore shares against their quota of 19.43 crore.
Retail investors bid 7.45 times against the 12.96 crore shares reserved for them. The only category that wasn't fully subscribed by the shares reserved for company employees, who sought just 62 per cent of the 65 lakh shares reserved for them.
The IPO opened for subscription on July 14 in a price band of Rs 72-76 per share.