Zomato Stocks Decline: What Are The New Changes?

Zomato Stocks Decline: What Are The New Changes?

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,

“I am taking a new turn in my life and will be starting a new chapter, taking a lot from this defining chapter of my life — the last 6 years at Zomato. We have a great team now to take Zomato forward, and it’s time for me to take an alternate path in my journey.”

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,

“I am in love with Zomato and will always be. Came in 6 years back not knowing what this would turn out to be. And what a mind-blowing and amazing journey this has been. Feel proud of where we are today, what we have overcome to get here and feel even more proud of what we will achieve in the future.”

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.

Frequently Asked Questions On Zomato Stocks Decline

1. Why Zomato shares are falling?

There is a Zomato stock decline of 2.97% to Rs 138.95 after one of the top executives of Zomato, Gaurav Gupta decided to quit his job.

2. What causes a decline in stock price?

Stock prices change every day by the forces of the market. If more people wish to purchase a stock than sell it, then the price increases. In the reverse pattern, if more people wish to sell a stock than purchase it, there would be higher supply than demand in the market, and the price would decrease.

3. Who funds Zomato?

Zomato connects more than 55 million users to varied restaurants in almost 24 countries. It is funded by investors such as Temasek, Steadview, Tiger Global, Kora, Luxor, Baillie Gifford, Fidelity (FMR), Baillie Gifford, D1 Capital, Mirae, and Ant Financial.
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Yaseer Rashid

Yaseer Rashid got a degree in Journalism and worked as a freelancer. Later he joined News Magnify as a Business and stock writer.

6 Comments

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