Zomato shares crash 12% for the second consecutive day, here’s why

The shares of Zomato crashed 12% for the second consecutive day on Tuesday, thus hitting an all time low of Rs 41.60 a share.

On Monday also, the stocks of Zomato had dipped to record levels and breached its listing price.

Reports suggest that the sharp fall in share price was triggered by unlocking of lock-in period of pre-offer equity shares.

Around 78% of Zomato’s total shares — owned primarily by founders, early employees and pre-IPO investors — had been under a year-long lock-in period, but these shares were allowed to be sold starting Monday. As founders and employees rushed to sell their shares, Zomato’s stock was battered, falling about 12% on both Monday and Tuesday.