Zomato slumps 11%, closes at new low of Rs 47.55 as one-yr IPO lock-in ends

Nearly Rs 1,300 crore worth of shares changed hands in the counter - six times more than its six-month average

The Zomato stock plunged on Monday as investors scrambled to sell the shares of the food delivery start-up after the one-year freeze on all its pre-IPO (initial public offering) shareholding ended. The stock closed at a new low of Rs 47.55, down 11.4 per cent over its previous close. This was the second-worst single-day sell-off since its listing.

Typically, selling pressure is seen whenever the lock-in period meant for IPO anchor investors ends. However, it’s unusual for shares of companies to tank after the end of the one-year lock-in period.

Market players attributed the selling pressure to Zomato’s atypical shareholding pattern. The