Technology

Zomato hits all-time low, wipes out half of investor wealth in first 4 months of 2022


New Delhi: Shares of Zomato hit a new lifetime low on Friday as the selloff in the counter continued amid rising pessimism over the counter.

The food delivery platform has wiped out almost half of the investors wealth in 2022 so far. The scrip has dropped about 12 per cent in the month of April itself.

Zomato’s stock price dwindled to the lows of Rs 71.6 on Friday, April 28 from the highs of Rs 141.35 on January 3, the first trading session of the year.

The order from Competition Commission of India (CCI) has wreaked havoc on the counter. Prior to this, the sharp selloff in new age tech platform stocks jittered the sentiments.

On April 4, the commission had ordered a detailed probe against food delivery platforms such as Swiggy and Zomato for alleged unfair business practices with respect to their dealings with restaurant partners.

According to reports, Zomato clarified that the company will continue to work closely with the commission to assist them with their investigation and explain to the regulator that their practices are in compliance with the competition laws.

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“We intend to promptly comply with any recommendations given to us by the commission,” Zomato said in an exchange filing earlier this month.

Institutional investors have been trimming the stake in the company in the March 2022 quarter. Domestic mutual funds have sold 83 million equity shares or 1.1 per cent stake in the company to own 2.82 per cent.

FPIs have offloaded 68 million equity shares or 0.9 per cent stake in the company to own 10.17 per cent stake. However, individual shareholders’ holding in Zomato increased by 2.07 percentage points to 9.07 per cent.

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