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videos | IST

Zomato bumper listing a boost for Info Edge; here's why

Food ordering app Zomato's 52 percent premium listing will have an indirect impact on Info Edge India. Why? The Noida-based internet technology company holds close to 15 percent stake in Zomato. Therefore, Zomato's blockbuster listing the valuation of Zomato in Info Edge will also consequently go up.

Food ordering app Zomato's 52 percent premium listing will have an indirect impact on Info Edge India. Why? The Noida-based internet technology company holds close to 15 percent stake in Zomato. Therefore, Zomato's blockbuster listing the valuation of Zomato in Info Edge will also consequently go up.
On its deputy at, Zomato rose as high as Rs 137 per share before closing at Rs 125. This roughly puts its valuation in excess of Rs 1 lakh crore which means Info Edge's stake in Zomato is now valued closer to Rs 1,200 per share which is higher than analysts' expectations.
Therefore, the Zomato listing does provide an upside to Info Edge. In the last few years, the stock has been a compounded clocking 500 percent rise in the last 5 years.
Reacting to the stock move, Sudheer Guntupalli, lead analyst-technology sector at ICICI Securities said, "Every USD 1 billion valuation of Zomato will have Rs 100 impact on the sum-of-the-parts valuation (SOTP) pricing of Info Edge and most of the consensus is currently at Rs 700-800 implied SOTP valuation for Zomato with an Info Edge's target price forecasting."
Watch the accompanying video of CNBC-TV18's Reema Tendulkar for more details.