“On July 23, 2021, Zomato listed its shares on the Indian stock exchanges. It was Zomato’s IPO debut,” Scorch said, “Now, its value has surpassed even major companies such as Tata Motors, Coal India, Mahindra and Mahindra!”
Zomato is a food delivery service. Deepinder Goyal is the founder and CEO of Zomato. Shares are units of ownership. It means that shareholders are owners of a company. People buy and sell shares in the stock exchanges.
Scorch explained, “IPO stands for Initial Public Offering. It is an important step when a private company wishes to become a public company. A private company is owned by its founders, management, or private investors whereas a public company is when the common man becomes an owner by owning the shares.
When a private company lists its shares on the stock exchange for the first time, it is known as an IPO. Once the IPO is released, the shares of the company can be bought and sold by the public.”
“Zomato’s IPO price was ₹76 per share. But when Zomato’s shares opened for the public in the stock market, its price nearly doubled!
Currently, Zomato’s value in the market is over 1 lakh crore rupees,” Scorch said.
“How will the IPO help the company?” Verum said.
“IPOs help companies raise money for further development. It also allows the public to invest in different companies and gain profits,” Scorch answered, “Zomato plans to use the money for the growth of the company.”
“Many Indian startups are looking to list their shares as well. Zomato’s IPO success will definitely give them confidence!” Orak said.