InvestorQ : Why did the price of Zomato fall so sharply on Monday 25th July?
Mitali Bhutta made post

Why did the price of Zomato fall so sharply on Monday 25th July?

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3 weeks ago
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On Monday, the 25th of July, the stock of Zomato fell more than 14% at one point of time to touch a record low. However, despite the late recovery in the story, Zomato still closed with losses of nearly 11.5% for the day at Rs47.50. The sharp sell-off was largely on account of the one-year lock-in of shares ending on Monday. It may be recollected that the stock of Zomato was listed on 23rd July 2021, so a full year is over, completing the lock-in.

The stock of Zomato had a stellar listing in July last year but has since lost more than 70% value from the peak price due to valuation concerns around the stock and stiff competition from Swiggy. The sentiments have been rather weak post the acquisition of Blinkit, as investors were unhappy with the steep valuations paid, the persistent lossees of Blinkit that had to be funded and the opaque nature of related parties in the transaction. Blinkit marks Zomato’s big foray into the high growth, quick commerce area.

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