Zomato shares slip over 4% in early trade, here’s why

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Zomato shares fell over 4% today after the online food delivery firm said that its co-founder Mohit Gupta has resigned from the company. Sentiment surrounding the stock also weakened amid the company’s plans to lay off 4% of its workforce in order to cut costs and become profitable.

Zomato stock fell 4.31 per cent to Rs 64.25 on BSE. The stock opened at Rs.66.30 against the previous closing price of Rs.67.15. Zomato share was trading higher than 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.

However, the stock has declined 57.84 per cent in one year and 52.56 per cent since the beginning of the year. The market cap fell to Rs 55,115 crore on BSE.

A total of 31.18 lakh shares changed hands on BSE for a turnover of Rs 20.33 crore. The stock hit a 52-week high of Rs 161.25 on Nov 25, 2021 and a 52-week low of Rs 40.55 on Jul 27, 2022.

Gupta joined Zomato four-and-a-half years ago and became co-founder in 2020 from the position of CEO of its food delivery business. Late. Zomato has seen several top-level exits from the company.

These include Rahul Ganju, who was the head of new initiatives, and Siddharth Jhawar, the vice president of global development. The company’s Deputy Chief Financial Officer Nitin Savara also quit in August.

Zomato has also announced that it will be shutting down its food delivery operations in the UAE. “We would like to update the Exchange that the company will stop providing services to Talabat in the UAE with effect from November 24, 2022,” the company said.

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