Brief: Zomato sees share price leap 70% on Indian market debut

• Food delivery app Zomato went public on India’s National Stock Exchange today, with its shares opening at 53% over their IPO price to value the company at ₹910 billion ($12.2 billion.)
• Zomato’s shares hit a one-day high of ₹139, over 70% higher than their asking price, CNBC reported.
• According to Reuters, the IPO drew $46.3 billion in bids and was oversubscribed by more than 38x.

Why it matters:

Zomato filed its IPO prospectus in May, indicating it would use the proceeds for growth, including M&A activity. Its closest competitor, Swiggy, secured $1.25 billion in private funding from investors including SoftBank‘s Vision Fund and Prosus earlier this week.

Zomato, which is backed by the likes of Ant Group and Temasek, reported an ₹8.16 billion ($110 million) loss last year, with revenue shrinking 23% to hit ₹19.9 billion ($267 million.) It acquired Uber’s India food delivery business early last year, with the US company becoming one of its major shareholders as a result of the deal.