Shares Of Zomato Fell Below IPO Price

Shares of Zomato fell below IPO price, know what should be the next strategy.

On Tuesday, Zomato’s stock reached the lowest level ever in the stock market.

Zomato stock hit a new low of Rs 75.75 on BSE and slipped below the IPO issue price of Rs 76 as selling continued by internet companies.

However, the market recovered from the selling pressure of the day before and the company’s stock closed above the level of Rs 82.70 at the time of closing of the market.

Selling pressure.

Despite a sharp reduction in the company’s losses in the December quarter, its stock continues to sell. The food delivery firm also indicated that it is very close to achieving Ebitda breakeven.

But none of the rhetoric could help its shares, which are now less than half their top levels.

Shares of Zomato fell below IPO price: What is the strategy?

However, analysts are bullish on the stock. Their consensus recommendation is Buy.

The analysts have put the target average price of Zomato’s stock at Rs 143 for 12 months. It is expected to reach a high of Rs 220 and come down to Rs 75 in a year.

An all-time high of Rs 169.10.

The company’s stock reached an all-time high of Rs 169.10 on the BSE on 16 November 2021 and has since fallen by over 55 percent.

The stock had gained 65.79 percent on the day of listing. The company had raised around Rs 9375 crore through IPO last year.

Sensex-Nifty opened on a positive note, showing the effect of returning to a Russian army base

The BSE Sensex opened with a slight rise on Wednesday at 58,310 points. At the same time, Nifty 50 also opened slightly up at 17,408 points.

According to experts, investors are cautious about the rising tension between Russia and Ukraine. Although the market has opened on a positive note and it is likely to remain bullish.

Let us inform you that on Tuesday, investors had bought heavily at the lower level, due to which both the indices made up for the losses of the previous sessions.

The BSE Sensex closed at 58,142.05, up 1,736.21 points. This is the highest increase in a day since February 1, 2021.

Similarly, the Nifty of the National Stock Exchange also closed with a gain of 509.65 points, or 3.03 percent, at 17,352 points.