Why Zomato's pre-public offer investors are rushing to the exit door

Though stock has crashed 65% from peak, most pre-IPO investors are in-the-money even at beaten-down valuations

Within two weeks of the one-year lock-in on Zomato’s pre-initial public offering (IPO) shareholding ending on July 25, three marquee investors in the food delivery major have sold their stakes in the open market.

This comes despite many initial investors netting gains, though the stock is currently trading at Rs 58 apiece, 65 per cent below its lifetime high of Rs 169 and about 25 per cent below its IPO price of Rs 76. And even as Zomato posted better-than-expected numbers for the quarter ended June and its management indicated that the food delivery business could turn profitable by the