Zomato share price rose 7 percent in early trade on November 25, 2024. Zomato’s ₹8,500 crore QIP (Qualified Institutional Placement) approval and BSE Sensex inclusion are the main drivers for the surge. Zomato shares surged to ₹282.85 on the BSE, reflecting the positive market sentiment.
Zomato became the first new-age tech firm to find a place in the 30-stock BSE Sensex, replacing JSW Steel. Asia Index Private Limited, a BSE subsidiary announced this change, which came into effect from December 23, 2024.
The move underlines Zomato’s great performance in the market, with its stock up by more than 113% this year. The company surpassed the Sensex's 20% return in the past year. Apart from Sensex, Zomato will also appear in the BSE 100, BSE Sensex 50, and BSE Sensex Next 50 indices, which will further cement its position as a market leader.
Shareholders of Zomato have given a nod to an ₹8,500 crore QIP to improve its balance sheet and strengthen the company's financial health. The move was approved by the board last month. It should stand the company in good stead amidst changing market trends.
Aggressive investments in growth ventures have depleted the cash reserves of the company. Cash balance declined from ₹14,400 crore to ₹10,800 crore at the end of September. The decline can be attributed to heavy quick commerce investments and the purchase of the entertainment ticketing business of Paytm for ₹2,014 crore.
Zomato, however, remains fixated on the desire to provide quality service and steady margins in the business of food delivery. The company's quick commerce segment stands close to achieving adjusted EBITDA break-even while signaling a focus on operational efficiency.
BSE indices witnessed several stocks being reshuffled in its recent reconstitution. Some of the notable additions are Jio Financial Services, Adani Green Energy, and Suzlon Energy in BSE 100. On the other hand, other stocks like Ashok Leyland, PI Industries, and IRCTC were removed. In BSE Sensex 50 and Next 50, Zomato, HAL, and others replaced firms such as BPCL and LTIMindtree.
More acquisitions or minority investments in the near term are off the table for Zomato. The company’s primary focus currently is on resource optimisation and sustainable growth. Zomato shares future outlook looks bright with the company’s spirit of resilience and continuous innovation.
These developments show Zomato's inspiring tale from a small start-up to a mighty powerhouse in India's capital markets