InvestorQ : How will the Zomato listing likely affect the stock of Info Edge which has a stake in Zomato?
ishika Banerjee made post

How will the Zomato listing likely affect the stock of Info Edge which has a stake in Zomato?

Answer
image
4 months ago
Follow

With the successful listing of Zomato and its post listing performance, investors are find the valuations of Info Edge compelling. Incidentally, Info Edge is profit making, it holds over 15% in Zomato and Info Edge market is just about Rs.67,000 crore compared to Rs.100,000 crore market cap for Zomato. Info Edge will also benefit from the cash generated from the small stake sale. Even its holdings in Zomato could now become currency for Info Edge.

The irony is that just the investment in Zomato is worth 30% of Info Edge market capitalization. Zomato also has a stake in Policybazaar and the value could only get discovered over a period of time as holding company discount will apply for Info Edge.

3 Views