Rakesh Jhunjhunwala isn’t tempted by Zomato’s stellar listing, says he isn’t buying, here’s why

Jhunjhunwala appears not to be tempted by the fantastic performance of Zomato on Indian bourses.

New Delhi: Rakesh Jhunjhunwala, often known as the big bull of the Indian stock market, has cleared that he’s not interested in buying the shares of Zomato, which made a stellar listing on the bourses on Friday (July 23). On the day of listing, Zomato’s shared surged by nearly 53 per cent against its issue price of Rs 76. 

However, Jhunjhunwala appears not to be tempted by the amazing performance of the food delivery company on Indian bourses. According to a report by Economic Times, Jhunjhunwala said that he is not going to buy Zomato shares. However, the ace investor wished good luck to the food delivery company at a webinar organized by Equirus. 

Zomato shares closed at Rs 125.85 on Friday, an increase of Rs 10.85 or 9.43 per cent from the listing price. At present, the food delivery giant is valued at around Rs 98,731.59 crore. The stock has already offered bumper returns to investors who were allotted the stocks against their bids. 

However, Jhunjhunwala cited his own thesis behind not adding Zomato to his much looked upon portfolio. "What I buy is very important, at what price I buy is the most important. Let Zomato be worth Rs 99,000 crore and Tesla be $600 billion or $6 trillion. I am not going to buy these stocks," Jhunjhunwala was quoted as saying. 

Further backing his thesis, he pointed out that doesn’t need to visit every party in town and that the “hangover comes only the next day.” However, a few share market experts are suggesting stock investors hold Zomato shares because of the vast opportunities lying in front of the online food aggregator. Also Read: Aadhaar Card Update: Now children can get Baal Aadhaar Card: Here’s how to make it

For instance, Head of Research at Geojit Financial Services Vinod Nair emphasised that For successful IPO allocation, though the listing is much above the expectations, current investors can hold on to their shares as this new business is forecasted to grow at the high digit in the early stage of the cycle. “For new and existing investors, can accumulate on a short to medium-term basis, as the trend of stock price stabilises," he told IANS. Also Read: Elon Musk cites THIS reason behind the delay in Tesla's India launch