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Zomato Tanks ~13% to Its All-Time Low. Here’s Why!

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Zomato

Last Updated on Jul 25, 2022 by Anjali Chourasiya

Zomato got off to a rocky start this week! Its shares plunged over 13% on the morning of 25 July 2022. The stock hit its all-time low as the mandatory lock-in period of one year for the pre-IPO shares ended. 

The mandatory lock-in period was for promoters, employees, and other shareholders who had bought the stock before the IPO ended on 23 July 2021. The one-year lock-in period ended on 23 July 2022, after the completion of one year of its listing.

Following this, Zomato shares opened in red in the early morning trade of Monday. It hit its all-time low of Rs. 46, bringing down the market cap to ~Rs. 36,484.70 cr. At its peak, the market cap was more than Rs. 1.25 lakh cr. It has wiped off Rs. 89,000 cr. worth of investor’s wealth on a closing basis.


According to the data from National Stock Exchange (NSE), 4.81 cr. equity shares of Zomato worth Rs. 234.75 cr. had changed hands as of 9.40 AM on 25 July 2022. More than 613 cr. shares of Zomato were under lock-in period, which constitutes about 78% of the shareholding of the company.

Zomato was one of the first unicorns to list last year. Its IPO was a success. It was subscribed 38.25 times and made a terrific debut at a premium of 53%. However, at present, the share price of Zomato is ~ 70% down from its peak of Rs. 169 in November 2021. 

For the Q4 FY 2022, the company’s net loss widened to Rs. 359 cr. while the income was up by 7.22% quarterly. The company’s expenses for FY 2022 outweighed its revenue as compared to a year-ago period. Further, the shares tanked 14% after the company announced the acquisition of a quick commerce firm, Blinkit, in June 2022.

The ride for Zomato seems to be going downhill, but will it make an upswing? Only time will tell.

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