Mumbai, Dec 25: Zomato made history on December 23 by becoming the first Indian startup to join the Bombay Stock Exchange’s (BSE) prestigious Sensex 30 index, replacing JSW Steel. The move underscores the growing influence of tech-driven companies on India’s leading stock market index.
The inclusion of Zomato, a food delivery giant led by Deepinder Goyal, is expected to bring significant market inflows, with analysts estimating about $513 million (Rs 4,362.35 crore) in investments. In contrast, JSW Steel, which was replaced in the index, is projected to face outflows of $252 million (Rs 2,142.91 crore).
The shift marks a milestone for India’s financial landscape, as the Sensex 30 index, traditionally dominated by manufacturing and energy giants, now includes a major player from the tech sector. This development reflects the increasing prominence of technology companies in the country’s economic growth and investor portfolios.
Zomato’s stock performance has garnered attention in recent months. Over the last six months, its share price surged by approximately 38-43%, delivering a remarkable 114-126% gain year-over-year. As of December 23, the company’s market capitalization stood at Rs 2.64 lakh crore.
Zomato’s financial performance has also been strong. In the second quarter of the fiscal year 2024, the company reported a revenue of Rs 4,799 crore, marking a 68.5% quarter-on-quarter increase from Rs 2,848 crore in Q2 FY24. Net profit for the quarter leapt to Rs 176 crore, a nearly fivefold increase compared to the same period last year.
In comparison, Zomato’s rival Swiggy, the other major player in India’s food delivery space, posted a net loss of Rs 625 crore on revenue of Rs 3,601 crore during the same quarter.
Zomato’s recent financial success was further bolstered by a major fundraising effort, raising over $1 billion (Rs 8,500 crore) through a Qualified Institutional Placement (QIP). This marked the company’s first major fundraise since its 2021 IPO, with Zomato issuing 33.65 crore equity shares at Rs 252.62 per share.
Zomato’s entry into the Sensex 30 highlights its continued growth and the rising importance of India’s tech-driven companies in global financial markets.
