Zomato shares extend gain as ₹8,500 cr QIP opens for subscription

Shares of Zomato continued gaining streak for the second session on Tuesday, rising nearly 2% in early trade after the online food delivery company launched its ₹8,500 crore qualified institutional placements (QIP). The company announced fundraising amid intensifying competition in the quick commerce space, with Swiggy recently raising ₹11,300 crore through initial public offering (IPO) route, and Zepto securing over $1.3 billion in fresh funding.

Zomato has fixed the floor price for the QIP at ₹265.91 per share, a discount of 2.8% from Monday’s closing price. Last week, the shareholders of the foodtech company approved the proposal to raise capital through QIP route, which is intended to be used to strengthen the balance sheet and support the expansion of its quick commerce arm Blinkit. The fundraising plan got green signal from the board of the company last month.

Extending previous session gains, Zomato shares gained as much as 1.8% to ₹278.60 on the BSE, while the market capitalisation rose to ₹2.43 lakh crore. In the two sessions, the largecap stock has risen 5.5%.

Zomato is one of the preferred stocks among new-age companies, with the company delivering consistent returns in the last one year amid improvement in its financial performance. The counter touched its 52-week high of ₹298.20 on September 24, 2024, rebounding nearly 2.5 times from its 52-week low of ₹113.50 hit on November 28, 2023. The largecap stock has risen 140% in a year; 59% in six month; 120% in the calendar year 2025; and 8% in the last one month.

On the back of sustained rally in its share price, Zomato is set to be included in the Sensex pack, effective from December 23. The Deepinder Goyal-led company will replace JSW Steel in the 30-stock benchmark index as part of the latest reconstitution announced by Asia Index Private Ltd, a subsidiary of BSE.

Going ahead, Zomato is also expected to be included in the Nifty 50 benchmark index, domestic brokerage JM Financial said in a recent report. The report noted that inclusion of Zomato in the Nifty50 index would potentially lead to fund inflows of $607 million.

For the second quarter ended September 30, 2024, Zomato reported multifold growth in its consolidated net profit to ₹176 crore, compared to ₹36 crore in the year ago period. The revenue from operation surged 68% year-on-year (YoY) to ₹4,799 crore, driven by improvement in margins in the food delivery business and expansion of its quick-commerce business. On the operating front, EBITDA stood at ₹230 crore, while the margin was at 4.7%, up 50 basis points quarter-on-quarter (QoQ).