Zomato IPO FOMO ? Enter on dips post listing, says Gaurang Shah

Indian benchmark equity indices settled in the green led by IT stocks; BSE Smallcap index hits new high. Retail investors make a beeline for Zomato IPO as it gets subscribed 33% on day 1 so far, while the retail portion gets  booked 1.74 times.

Among the sectors, BSE IT and technology sectors rose more than a percent each while energy, FMCG, auto, realty and oil & gas traded in the red.

Gaurang Shah of Geojit Financial Services spoke to Money9 on the Zomato IPO and said, “We have a Subscribe recommendation although valuation is the tricky part for new entrants which have no peers. The price band of Rs 72-76 is decent to attract investors interest and the long term growth prospects are very very strong as India only has a penetration of only 8% as far as the food delivery is concerned. In the developed world , it is 30-50%. There is a huge potential to capture the market share. ”

Stock market is all about taking the plunge, he believes as he talks about the risks involved. It is all about identifying opportunities in crisis.

“Even if you don’t get the allotment, one can look at dips to enter as it is definitely a long term growth story.”