140% Returns: Food Delivery Giant Zomato Raises Rs 8,500 Crore Via QIP, Shares Enter NSE F&O Segment Today

Food delivery giant Zomato has successfully raised Rs 8,500 crore through a Qualified Institutional Placement (QIP), marking its first major fundraising effort since its initial public offering (IPO) in July 2021. The QIP saw the allocation of 33.65 crore equity shares at Rs 252.62 per share, reflecting a 5% discount to the floor price of Rs 265.91.

The issue, approved by Zomato's Fund Raising Committee, was closed on November 28, 2024, after receiving funds and application forms from qualified institutional buyers. The move is aimed at strengthening Zomato's balance sheet and fueling its long-term growth initiatives.

Zomato plans to channel a significant portion of the funds-Rs 2,137 crore-towards expanding its quick commerce unit, Blinkit. This will include investments in dark stores and warehouses to bolster Blinkit's operational capacity. The company also intends to allocate funds for advertising and marketing campaigns.

Founder Deepinder Goyal had earlier emphasized that this capital infusion would provide Zomato with the necessary resources to sustain its growth trajectory while supporting its strategic objectives.

Zomato Joins F&O Segment
In a significant milestone, Zomato's shares debuted in the National Stock Exchange's (NSE) futures and options (F&O) segment on November 29, 2024. This inclusion is expected to enhance liquidity and provide investors with opportunities for hedging and speculative trading in the stock. Additionally, entry into the F&O segment is a prerequisite for a company's inclusion in the Nifty 50 index.

Zomato is already set to join the BSE Sensex index from December 23, 2024. Analysts at JM Financial have speculated that its F&O inclusion could pave the way for its addition to the Nifty 50 index during the March 2025 rebalancing.

Zomato's shares were trading lower on November 29, down by over 3% at Rs 276.92 on the NSE as of 1:15 pm. However, the stock has demonstrated robust performance over the past year, delivering multibagger returns of approximately 140%. In 2024 alone, Zomato's share price has surged by more than 122%.

Zomato's QIP marks a critical step in its journey to scale operations and strengthen its competitive edge in the evolving food delivery and quick commerce space. The allocation of funds toward Blinkit reflects Zomato's focus on capturing market share in the quick commerce sector.

Moreover, the company's inclusion in the F&O segment and Sensex index further cements its standing as a key player in India's stock market, potentially attracting broader investor interest and enhancing trading volumes.