Shares of the food delivery platform company fell 14% in intraday trading on the BSE on Monday, with Zomato hitting a record low of Rs 46 as the pre-IPO lock-up period ended. The stock has fallen below the previous low of Rs 50.35, hit on May 11, 2022.

With today’s drop, Zomato is trading 39% below its issue price of Rs 76 per share. The stock hit an all-time high of Rs 169.10 on November 16, 2021. Zomato was listed on the stock market on July 23, 2021.

At 10.15 am, Zomato quotes were down 12% at Rs 47.45 on high volume. In contrast, the S&P BSE Sensex fell 0.6% to 55,725. OTC volumes more than tripled, with 104.62 million shares changing hands on the NSE and BSE. The stock has underperformed the market over the past month, falling nearly 4%, while Sensex gained 5.5%.

The lock-up period for Zomato Pre-IPO investors (sponsors, employees, etc.) ends on July 23, 2022. “Following a one-year lock-up period, pre-offering shareholders may sell their shares in our company depending on market conditions and the duration of their investment. In addition, any investor perception that such a sale may occur may additionally affect the trading of the shares price,” Zomato said in the Red Herring prospectus.

Under Regulation 17 of the SEBI ICDR Regulations, the entire pre-offer share capital is locked for one year from the date of allotment, except for the shares successfully transferred as part of the offer for sale. Zomato said before the offer, any equity allocated to employees under ESOP 2014, ESOP 2018 and ESOP 2021, whether current employees or not.

Media reported that Domino’s Pizza India franchise would consider divesting parts of popular food delivery app Zomato and SoftBank-backed Swiggy if commissions rise further.

The news was revealed in a confidential filing by Jubilant FoodWorks, which operates Domino’s and Dunkin’ Donuts chains in India, to the Competition Commission of India (CCI), which is investigating Zomato and Swiggy for alleged anti-competitive conduct, the news agency reported.

According to the Bollinger Bands on the daily chart, Zomato once again fell below the lower end of the expected trading range. As long as the stock is trading below Rs 60.20, the short-term bias will likely favour the bears.

According to the weekly chart, Zomato may now test its support at the lower end of the Bollinger Bands at Rs 44 on the weekly chart.

The MACD and DI have turned bearish among the main momentum indicators, while the slow stochastic and 14-day RSI remain in oversold territory.