There is a Zomato stocks decline of 2.97% to Rs 138.95 after one of the top executives of Zomato, Gaurav Gupta decided to quit his job. The company has not yet issued any official notice to the stock exchange. Gupta joined Zomato in 2015 and then he was promoted as the Chief Operating Officer in 2018 and as the founder in 2019.
In an email addressed to the staff at Zomato, Mr.Gupta said,
The co-founder also stated that he could not have asked more than what he has received from the company. He is grateful for all the experiences and love that he has got from Zomato all these years. He further said,
How the Zomato Stocks Decline Took Place?
Zomato stocks increased as much as 6.67% to attain the record high of Rs 152.75 in the morning trade. On the Bombay Stock Exchange, the counter audited 66.89 lakhs of shares so far. When this figure is compared to a two week regular volume, it was only 21.85 lakhs.
Apart from that, the media reported that Zomato had plans to put a bar on its grocery delivery service from17 September 2021 due to the back of gaps on fulfilling the order that is in turn leading to poor customer experience. This firm has also put a stop to the Nutraceutical business which they began last year.
Zomato is among the leading Food Services technology channels operating in India in terms of the value of food that is being sold, as of 31 March 2021. The entity operates in 23 countries. This food delivery company posted a combined net loss. The Zomato loss is of Rs 356.2 crore in Q1 FY22, which is more than the net loss of Rs 99.8 crore that they faced in Q1 FY21. The net sales of the company jumped 217 percent year on year to Rs 844 crore in Q1 FY22 compared to Q1 FY21.
Zomato share price entered the stock exchange on 23 July 2021. The stocks were listed at a value of Rs 115, which was a premium of 51.32 percent to the issue price of Rs 76 for every share. The IPO (initial public offer) of the online food delivery channel Zomato got bids for 2,751.27 crore shares against 71.92 crore shares that were on offer. The stocks that were issued were subscribed 38.25 times. The issue was available for bidding on 14 July 2021 and ended on 16 July 2021. The band price of the IPO was set at Rs 72-76 for every share.
The Bottom Line
Zomato stocks decline, after Gaurav Gupta, the COO of Zomato plans to quit. Zomato which shook the market on their July IPO has now declined by 2.97% to Rs 138.95. It has also planned to close some of its other services to concentrate primarily on food delivery.