Down 69% From Its ATH Price, This New Age Stock Is Given 'Sell On Rise' Call

The shares of the food delivery platform which made its debut on the bourses last year on July 23, 2021 is seen to see further sell-off. The stock from the issue price of Rs. 76 has come down to last trade at Rs. 53.

Now there is recommended a 'Sell' on the stock as the 1-year lock in for promoters etc. is to end next week.

Lock in period is typically a duration during which the promoters, employees' etc holding the scrip shall not be allowed to offload their positions in the scrip. Currently this portion is roughly 613 crore of 78% of the total paid up of the entity as per the leading dailies report.

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."

The company on debut made remarkable gains to the tune of 51% on the listing day and hit a 52-week high of Rs. 169 per share in November last year.

But the stock now is seeing some sell-off pressure and is significantly down from its all time high i.e. by almost 68.6%.