Zomato IPO: How is the shares performing in the gray market ahead of the public offering?

Zomato’s initial public offering opens for subscription on July 14. Ahead of the IPO, analysts and investors are optimistic about the company’s public offering. Here’s how unlisted shares of the company are performing on the grey market.


Online food delivery giant Zomato’s initial public offering (IPO) is all set to open for subscription on July 14. Investors and analysts remain optimistic as the unlisted shares of the company are available at a premium of 26 percent in the grey market ahead of the public offering.


Zomato shares were trading at a premium of Rs 16-20 per share — a maximum of 26 percent premium — on the upper IPO price band of Rs 76, according to data available on IPO Watch and IPO Central. Therefore, the unlisted shares of the company are currently available on the grey market at Rs 92-96 per share.

It may be noted that the grey market is an unofficial platform for share trade. On this platform, unofficial trading starts after the announcement of an IPO’s price band till the shares are officially listed on the stock markets.


The company through its technology platform connects customers, restaurant partners, and delivery partners, serving their multiple needs. Customers use the company’s platform to search and discover restaurants, read and write customer-generated reviews, view and upload photos, order food delivery, book a table, and make payments while dining at restaurants.


It was present in 525 cities in India, with 3,89,932 active restaurant listings in the year ended March 2021.

The food delivery company posted a consolidated loss of Rs 816.43 crore in the financial year ended March 2021 against a loss of Rs 2,385.6 crore in the previous year. Revenue from operations during the same period fell to Rs 1,993.78 crore, from Rs 2,604.73 crore as there was an impact of Covid-19 on operations of the company.


Equity shares are proposed to be listed on the BSE and NSE. Kotak Mahindra Capital Company, Morgan Stanley India Company, and Credit Suisse Securities (India) are the global coordinators and the book running lead managers to the issue. BofA Securities India and Citigroup Global Markets India are the books running lead managers to the offer.

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