The state of the market is generally uncertain and there is a chance that Zomato investors will be looking for every opportunity to offload the shares at every slight price gain.
The shares of the Indian food delivery giant, Zomato Ltd (NSE: ZOMATO) are on a free fall as it plunged to its all-time low (ATL) today after its one-year share lock-in period for promoters, employees, and other investors expired following the 2021 listing. Zomato went public on July 23 last year in a reassurance that the Indian tech ecosystem is still very much productive.
Zomato enjoyed massive backing even in the private sector prior to its listing as it pulled as much as $562 million from investors ahead of the IPO at the time.
The fears of the selloff from investors have sent a bearish trigger to the investing ecosystem, pushing Zomato holders to offload their coins ahead of the likely doomsday. This selloff says the shares of the company changed hands at 47.55 INR, down 11.68% as of 10:30 GMT+1 on Monday.
Since its listing debut, Zomato has lost as much as 60% of its valuation, compounded by the selloff in global stock amid a general economic depression.
“Shares of Zomato were listed on Indian bourses on 23rd July 2021, which mean one-year lock-in for promoters, company employees, founders of the company, etc. has ended today. As these shareholders constitute around 78 percent of the total paid-up capital of Zomato Limited, shares of this food service were under sell-off pressure in the early morning session today,” said Anuj Gupta, Vice President – Research at IIFL Securities, speaking on the Zomato shares selloff.
The Zomato shares performed at a stellar rate following its listing on the BSE and NSE. It attained its all-time high of 169 INR back in November last year.
Zomato Share Holders Will Find Opportunity to Sell-off
The state of the market is generally uncertain and there is a chance that Zomato investors will be looking for every opportunity to offload the shares at every slight price gain. This sentiment was echoed by Avinash Gorakshkar, Head of Research at Profitmart Securities who said:
“The stock is expected to remain bears’ favorite sell on rising for short to medium term as the stock was offered at Rs 76 per equity share in the primary markets around a year ago. So, after the end of the one-year lock-in for Zomato shareholders, who constitute around 78 percent of the total paid-up capital of the company, would look to exit on every bounce in the stock, especially when it would come around its offered price of Rs 76 apiece levels.”
Earlier, Zomato announced that it will be acquiring grocery delivery startup Blinkit in June, which acquisition investors are notably not comfortable with. This is made visible by the fact that Zomato has dropped 30% of its shares since the announcement went out at the time. According to analysts, the company will need to pump more money to stabilize Blinkit’s business, a move many sees as derailing the company from solidifying its business position on its core business.
Should Zomato want a turnaround from its current woes, analysts are predicting it will have to find its way back to productivity to rewrite the current bearish sentiment from investors.
next
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Source: https://www.coinspeaker.com/zomato-shares-all-time-low/