By Aditya Raghunath
Investing.com -- Zomato, one of India’s largest food delivery and service platforms, is scheduled to make its debut on the bourses today. It has been one of the most keenly-watched IPOs in recent times, and investor expectations are high.
The grey market premium (GMP) for Zomato has seen a massive jump in the last two weeks. From around Rs 3 to Rs 27 on July 23. It was Rs 23 on July 22. That’s a jump of around 17% in just one day.
Market experts say that it is not unreasonable to expect a three-figure listing for Zomato. Listings range from Rs 95 – Rs 103. That translates into a premium of 25%-35% compared to Zomato’s issue price of Rs 76. The minimum premium that the market expects on Zomato shares is 15% which translates into a listing of Rs 87.4
Zomato’s IPO offering was oversubscribed by 180 times, one of the highest in recent times. And Zomato is pressing down on the accelerator considering market sentiment. Its IPO was scheduled for July 27 but the company pushed the date forward.
Market experts say that the strong jump in GMP, positive market sentiment and the release of surprisingly good Q1 FY22 earnings by Jubilant Foodworks Ltd (NS:JUBI), owners of the Domino’s and Dunkin Donuts brands in India, have been key reasons for the date being pushed forward.