First published in July 2021, before the IPO opened. Rewritten in October 2026 with what actually happened. This post is for education only and is not investment advice. Figures and rules change, so check official sources before you act.
When I first wrote about the Zomato IPO in July 2021, my view was that it was a good long-term opportunity and that it would be oversubscribed and deliver listing gains for short-term traders. Five years on, the listing-gain call was right and the long-term journey turned out far bumpier than the first day suggested. Here is the record, and what it teaches.
Key takeaways
- Zomato’s IPO in July 2021 was priced at ₹72 to ₹76 a share and raised about ₹9,375 crore.
- It was subscribed more than 38 times and listed 53% above the issue price on the NSE.
- The share price later fell well below the issue price before recovering.
- The company was renamed Eternal Limited in 2025 and now also owns Blinkit, Hyperpure and District.
- A strong listing day says little about the years that follow.
Zomato IPO: the key facts
| Item | Detail |
|---|---|
| Price band | ₹72 to ₹76 per share |
| Issue size | About ₹9,375 crore (fresh issue of ₹9,000 crore plus a ₹375 crore offer for sale by Info Edge) |
| Subscription | More than 38 times |
| Listing date | 23 July 2021 |
| Listing price | ₹116 on the NSE and ₹115 on the BSE |
| First-day close | ₹125.85 on the BSE, 66% above the issue price |
Source for these figures: Business Standard’s listing-day report. The market value briefly crossed ₹1 trillion that day.
Why the IPO mattered
Zomato was one of the first large, loss-making Indian internet companies to list on the domestic exchanges. Investors could not value it on profits, because there were none. They were buying growth, brand and the expectation of future earnings. That made it a test case for a wave of technology listings that followed.
What happened after listing
The first day was the easy part. During 2022 the share price fell well below the ₹76 issue price, as sentiment towards loss-making technology companies turned and early investors became free to sell. Anyone who bought on listing day at a premium sat on a heavy loss for a long stretch.
The business kept developing. Zomato acquired the quick-commerce company Blinkit in 2022, moved towards profitability, and the share price recovered strongly in the years after. In February 2025 the company announced it would rename itself Eternal Limited, reflecting that it had become a group of businesses: Zomato for food delivery, Blinkit for quick commerce, Hyperpure for restaurant supplies and District for going out. It is now a constituent of both the Sensex and the Nifty 50.
For the year ending March 2025, Eternal reported revenue of about ₹20,243 crore and net profit of about ₹527 crore. Check the company’s latest results for current numbers.
Five lessons from the Zomato IPO
- Listing gains and long-term returns are different bets. The same share gave a quick gain to allottees and a painful year to those who bought on day one.
- Oversubscription measures demand, not value. A 38-times subscription told you about enthusiasm, nothing more.
- Watch lock-in expiries. When pre-IPO shareholders are allowed to sell, supply rises.
- Loss-making companies need a different lens. Read the path to profitability in the prospectus, not only the growth rate.
- Patience was rewarded here, but that is not a rule. Several other technology listings from the same period have not recovered in the same way.
How to evaluate the next IPO
- Read the red herring prospectus, especially the risk factors and use of proceeds.
- Check how much of the issue is fresh capital and how much is existing shareholders selling.
- Compare the valuation with listed peers, where they exist.
- Decide before you apply whether you are in it for listing day or for years.
FAQ
What was the Zomato IPO price?
The price band was ₹72 to ₹76 per share, and shares were issued at ₹76.
When did Zomato list on the stock exchange?
Zomato listed on the NSE and BSE on 23 July 2021, opening at ₹116 on the NSE.
Is Zomato now called Eternal?
Yes. The listed parent company was renamed Eternal Limited in 2025. The food delivery app is still called Zomato.
How many times was the Zomato IPO subscribed?
More than 38 times.