After more than a year, Zomato shares rise above their IPO price- Watch Video

After more than a year, shares of the food delivery aggregator Zomato increased above their IPO price.Before closing at Rs 75.8, the stock reached an intraday high of Rs 76.3 a share. During its IPO in July 2021 for Rs. 9,375 crore, the company set its share price at Rs. 76. Zomato shares have increased 27.7% so far this year. 

Analysts claimed that the increase in revenues and a more definite path to profitability have rekindled interest in new-age businesses like Zomato.They claimed that worries about ONDC providing aggregators like Zomato with fierce competition had also diminished. Analysts cautioned that there would be limited upside from current levels because valuations are currently stretched.

Zomato reduced its losses in the March quarter from Rs 360 crore a year earlier and Rs 345 crore in the previous quarter to Rs 188 crore. To reach Rs 2,056 crore, the consolidated income surged by an astounding 70% year over year (YoY).