Zomato Share Price: Zomato shares recovered after a steady decline, trading flat after a decline of 10 percent

Zomato shares fell nearly 10 per cent on Wednesday amid reports of ride-hailing app Uber selling its entire stake in the food delivery company.  The stock fell 9.62 per cent to Rs 50.25 on the BSE.  Later, it regained investor confidence and was trading at Rs 54.40, down 2.16 per cent.

Shares of food aggregator and delivery company Zomato rose around 18-20 per cent on Tuesday.  After the company announced reduction in net loss during the first quarter (April-June) of 2022-23, investor confidence returned and Zomato shares recovered.  The company's net loss during the quarter stood at Rs 185.7 crore, as against Rs 343.1 crore in the corresponding period of the previous fiscal.  The company's revenue during the quarter grew 67 per cent to Rs 1,413.9 crore as against Rs 844.4 crore in the same quarter last year.  The increase in revenue was also driven by an increase in order values.

Let us inform that in July, Zomato completed its first year as a listed company on the Indian stock exchanges.  The initial IPO of the stock exchange-listed food aggregator received a bumper response on July 23, 2021.  It was subscribed at 38.25 times higher price.  It started off well with a premium of 53 per cent.  Though currently the share price of Zomato is down around 65-70 per cent from the high of Rs 169.  Even though the company has made decent profits after its listing on the stock exchanges in July last year, it has not been able to take it further.  Shares of Zomato recently fell sharply after the mandatory one-year lock-in period to raise paid-up capital ended.

Things got worse after the blinkit deal

Zomato's margins have been negatively impacted due to higher fuel cost and inflation.  The company is currently planning to reduce losses as well as increase its earnings.  After the acquisition of Blinkit, the stock of Zomato has been falling continuously.  Let us inform that the board of directors of Zomato had recently approved the proposal to acquire quick commerce company Blinkit for Rs 4,447 crore.  Blinkit was formerly known as Grofers.  It is believed that this acquisition will make better use of Zomato's hyperlocal delivery fleet.  This will also help in reducing the cost of delivery.