The Bombay Stock Exchange (BSE) has announced that it will add Zomato, the foodtech major, to its flagship BSE Sensex index, replacing JSW Steel, effective December 23.
BSE index comprise of 30 financially sound firms
This development makes Zomato the first new-age tech startup to feature in the benchmark index. The BSE Sensex serves as both a benchmark and an investable index, comprising 30 large, well-established, and financially sound companies across key sectors.
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The addition of Zomato to the Sensex is expected to bring in fund inflows into the stock as passive funds that track the index will allocate capital to the stock. With this addition, Zomato will join the ranks of established companies like Reliance Industries, Infosys, HDFC Bank, and Hindustan Unilever, among others.
Further the BSE has also announced that PB Fintech will be added to the BSE Sensex Next 50 and BSE 100 indices. Additionally, Zomato, along with Jio Financial Services, will be added to the BSE Sensex 50 index.
NSE adds Zommato to F&O list
Earlier this month, the National Stock Exchange (NSE) added Zomato to the futures and options (F&O) stocks list. Other new-age tech stocks like Delhivery, Jio Financial Services, Paytm, Nykaa, and PB Fintech were also added to the segment. Zomato has been witnessing strong growth in its top and bottom lines.
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Meanwhile, the company reported a net profit of INR 176 crore in the second quarter of the ongoing fiscal year, up over 4 times from the year-ago period. Operating revenue also zoomed 68.5% to INR 4,799 crore during the quarter.
Previously, the company acquired the entertainment ticketing business of Paytm for INR 2,048 crore earlier this year to further shore up its revenue. However, this resulted in the company’s cash reserves declining to INR 1,726 crore at the end of September 2024 quarter.
To further strengthen its balance sheet, Zomato is looking to raise INR 8,500 crore via qualified institutional placement (QIP) in December. A part of the freshly raised capital is likely to be used for scaling up the ‘going out’ or District vertical and expanding the presence of Blinkit amid the rising competition in the quick commerce segment.
Shares of Zomato ended Friday’s trading session 0.97% lower at INR 264.15 on the BSE. The stock has given 130% return year to date.
