Zomato shares at all-time low; slips below issue price

Shares of Zomato tanked over 6 per cent to hit an all-time low of Rs 57.65 on BSE amid a brutal market sell-off on Friday.

Currently, the stock is down over 66 per cent below its all-time high. It touched an all-time high of Rs 169.10 on November 16, 2021. On a year-to-date basis, the shares have fallen over 57 per cent.

Zomato made a bumper debut on bourses with the unicorn hitting the Rs 1-lakh crore market capitalisation mark. The stock opened at Rs 116, 52.63 per cent higher on NSE against the issue price of Rs 76.

The company reported a narrowing of consolidated net loss at Rs 63 crore for the quarter ending December 31, 2021. The firm had posted a net loss of Rs 352.6 crore in the year-ago period and Rs 429 crore in the previous September quarter.
 
Revenue from operations came in at Rs 1,112 crore, up 82.47 per cent against Rs 609.4 crore in the year-ago quarter. The Deepinder Goyal-led company also declared a consolidated exceptional gain of Rs 316 crore in the December quarter.

Last month, the Competition Commission of India (CCI) ordered a probe into the operations and business models of food delivery majors, Swiggy and Zomato pertaining to alleged violations of Section 3(1) and 3(4) of the Competition Act.

The CCI, in its order dated April 4, 2022, stated that there exists a prima facie case with respect to some of the conduct of Zomato and Swiggy, which requires an investigation by the Director General (‘DG’), to determine whether the conduct of these companies have resulted in contravention of the provisions of Section 3(1) 3(4) of the Competition Act.

Recently, one-stop restaurant management platform UrbanPiper stated that it has raised $24 million in a Series B funding round led by existing investors Sequoia Capital India and Tiger Global. It also onboarded Zomato and Swiggy as its new investors.