Zomato, India’s leading online food delivery company, listed strongly on the exchanges today with 53% premium at Rs 116 per share against its issue price of Rs 76 per share.

Commenting on the IPO listing, Sneha Poddar, Research Analyst, Broking & Distribution, Motilal Oswal Financial Services said, "Zomato's stellar debut on exchanges led to its market capitalization crossing Rs 1 lakh crore. Despite the large size of IPO at Rs 93.75 billion and rich valuations, the company saw healthy overall subscription of 38x. There is lot of fancy for such unique and first of its kind listing in the market.

Zomato with first mover advantage is placed in a sweet spot as the online food delivery market is at the cusp of evolution. It has consistently gained market share over the last four years to become the category leader in India in terms of GOV (Gross Order Value). It enjoys couple of moats and with economics of scale started playing out, the losses have reduced substantially. Though, predicting the growth trajectory at this juncture is little tricky, but it's a good bet from long term perspective."

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