Zomato shares: Analysts warn of selloff risks as one-year lock-in ends soon

 Zomato shares were listed on Indian bourses at a bumper premium of more than 51 per cent.Zomato shares were listed on Indian bourses at a bumper premium of more than 51 per cent.

Zomato shares were listed on BSE and NSE on 23rd July 2021 that means one year lock-in for founders, promoters, employees, etc. is going to end next week

Zomato share price:The public offer of food service platform Zomato Limited was listed on BSE and NSE on 23rd July 2021 that means one year lock-in for promoters, employees, and other will end next week. With this one year lock-in of around 613 crore Zomato shares, which is to the tune of 78 per cent of total paid up capital of the company, stock market analysts have cautioned sell-off risk in the stock calling it an idea 'sell on rise' stock in short to medium term.

Speaking on the overhang coming on Zomato shares after the end of one year lock-in, Anuj Gupta, Vice President — Research at IIFL Securities said, "Zomato shares were listed on BSE and NSE on 23rd July 2021, which mean one year lock-in for promoters, company employees, founders of the company, etc. is going to end next week. As these shareholders constitute around 478 per cent of total paid up capital of Zomato, shares of this food service platform is expected to remain under the sell-off pressure."

Calling Zomato shares as an ideal 'sell on rise' stock in short to medium term, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "There won't be immediate sell-off taking place in the counter as the stock is trading much below its offered price of ₹72 to ₹76 per equity share. However, the sock would face immediate sell-off pressure as and when it would reach around its offered price at the time of IPO launch. So, Zomato shares are expected to remain an ideal sell on rise stock in short to medium term."

Zomato shares were listed on BSE and NSE on 23rd July 2021 at a bumper premium of more than 51 per cent. After bumper listing, Zomato shares went on to make its life-time high of ₹169 apiece levels in November 2021 breaching ₹1 trillion market cap during this post-listing rally. However, the food services stock has been under sell-off heat after climbing to its life-time high and has been making new 52-week lows for last few sessions. Zomato shares ended at ₹53.50 apiece on NSE on Thursday, which is ₹3.45 above its 52-week low of ₹50.05 per share.

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