Zomato aside, Few loss making firms had post-IPO gains in past 10 years

While 51% of profit-making companies had positive returns one year after IPO, for companies that bore losses in at least one in the previous three years, the proportion was 30%

The most important takeaway from Zomato's huge initial public offering (IPO) on the stock exchanges was that the first internet unicorn with no annual profit ever registered to date, made listing day gains of 66 per cent. The Zomato Ltd stock touched Rs 126 at the close of listing day against the issue price of Rs 76. 

Notwithstanding the frenzy that this IPO carried with it, market pundits had sounded caution precisely for the fact that the company had not registered profits ever, highlighting the unique business model of India’s biggest food start-up. 

Not many loss-making companies have tried to