Zomato Share Price Today: 7% Up In Just One Session - What's Fueling the Rally? Details

The shares of the food and grocery delivery platform, Zomato rose by 7% earlier today, after it was included in the 30-stock Sensex. The shareholders of the company also approved of the Rs 8,500 crore Qualified Institutional Placement (QIP) plan.

Zomato Shares Rise 7%

The company's shares opened higher at Rs 273 against its previous close of Rs 264.15. the stock jumped 7% in intra-day trade to Rs 282.85.

As many as 14.70 lakh shares of Zomato were traded amounting to a turnover of Rs 41.79 crore on the BSE. The firm's market cap rose to Rs 2.47 lakh crore on Monday.

The share is trading higher as compared to its 100 day and 200 day moving averages and the stock is close to its 52 week high of Rs 298.20 from September 24,2024. The share has jumped 338% in two years and gained 147% within a year.

What Has The Sensex Rejig Caused?

Zomato will replace JSW Steel on the 30-stock Sensex from December 23.

The company's stock has risen 125% this year.

Additionally, the company's shareholders have approved raising Rs 8,500 crore through its QIP, Zomato said.

Earlier in October, the firm had approved this fundraise to give a boost to its balance sheet as its cash reserves declined by Rs 1,726 crore in the third quarter due to Paytm's acquisition of the ticketing business.

Zomato's current cash balance is Rs 10,800 crore, down from Rs 14,400 crore. The cash balance also reduced due to several significant investments in quick commerce and acquisitions.

Zomato's Agenda

The food and groceries-delivery giant wishes to focus on maintaining its service quality and ensuring level playing field in a competitive landscape.

The company has additionally, guided for steady margins in its core food delivery business and is close to an adjusted EBITDA break-even in the quick commerce segment.

The company has also ruled out any further minority investments or acquisitions in the near term, highlighting its commitment to achieving sustainable growth.