Food tech giant Zomato's IPO is getting a lukewarm response from investor as grey market premium continues to shrink ahead of the issue opening. Zomato's grey market premium has dropped from Rs 18-20 on the day of IPO announcement to Rs 10, signalling a 12-15 per cent premium over the IPO price of Rs 72-76.
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Zomato is looking to raise Rs 9375 cr from it's issue that is valuing the first mega startup listing at over $8 billion. This makes Zomato a pricey buy as investors are wary of growth prospects with Swiggy strengthening it's hold ahead of Amazon stepping into the space.