Zomato shares jump 7% as stock will enter SENSEX soon; firm also receives shareholder nod for ₹8,500 crore QIP

Shares of Zomato, the online food delivery company, jumped as much as 7.46% to ₹283.93 apiece on the NSE in the morning trade on Monday, November 25, as the stock will enter the benchmark BSE Sensex, replacing JSW Steel.

This is part of the latest reconstitution announced by Asia Index Private Ltd, a subsidiary of BSE. The changes will take effect on December 23, 2024, the Asia Index announced on Friday.

Zomato's inclusion in the 30-stock index marks a significant milestone for the company, which has seen an impressive rally over the past year.

Shares of the company have rallied 133% in the past 12 months and 113% so far in 2024.

Further, as a part of the reshuffle in the BSE Sensex 50, key additions to the index include Zomato, Jio Financial Services, and Hindustan Aeronautics Ltd.

On the other hand, HDFC Life Insurance Company, Bharat Petroleum Corporation Ltd, and LTI Mindtree are set to exit the index.

Besides, Zomato has also received shareholder approval to raise ₹8,500 crore through qualified institutional placement (QIP). The company passed a board resolution for this fundraise just ahead of its rival Swiggy’s IPO.

As per reports, Zomato has hired investment bank Morgan Stanley to initiate the process of the new QIP round.

The fresh funding is expected to intensify competition, particularly in the quick commerce space. Swiggy, with ₹4,500 crore raised through its IPO, is well-capitalised, while Zepto has comparable firepower following its recent ₹3,000 crore funding.

For the quarter ended September 30, 2024 (Q2 FY25), Zomato reported a consolidated net profit of ₹176 crore.

The board of the company, which had posted a consolidated net profit of ₹36 crore in the same quarter last fiscal, also approved the raising of ₹8,500 crore through qualified institutional placement of equity shares, Zomato Ltd said in a regulatory filing.

Zomato's consolidated revenue from operations stood at ₹4,799 crore.

The company said its results for the quarter and half-year ended September 30, 2024, are not comparable with other quarters and half-year results due to the acquisition of Orbgen Technologies Private Ltd (OTPL) and Wasteland Entertainment Pvt. Ltd. (WEPL), holding the 'movies ticketing' business and events business, respectively, from One 97 Communications Ltd. (Paytm) in August this year.