Zomato Drops To A Record Low As Lock-In On Pre-IPO Shares Ends

Shares of Zomato Ltd. fell to the lowest since debut after the lock-in period for investors who owned stake in the company before its initial public offering ended.

The lock-in period ended on July 23, a year after the company formally listed on the bourses. Shares are open on Monday for trading, as July 23 was a market holiday.

The online food aggregator’s stock fell over 14% to Rs 46—a record low, before paring some losses and closing 11.2% lower at Rs 47.6 apiece.

In August last year, Zomato’s stock had fallen the most in three weeks after the mandatory one-month lock-in for the shares allotted to anchor investors during the company’s IPO ended.

Zomato’s IPO—the first by a food tech company in India last July—was subscribed more than 40 times on the final day of bidding.

Of the 18 analysts tracking the company, 14 maintain a ‘buy’ and two each suggest a ‘hold’ and a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies an upside of 82.4%.