The stocks of online food delivery giant, Zomato, on Friday (October 18) saw a dip in its share price ahead of upcoming major announcements.

The stock opened notably lower at Rs 256.05, marking a nearly 5 per cent decrease from its previous close on Thursday.

During today’s trading session, the company's stock fluctuated, hitting a high of Rs 270.30 and dipping to a low of Rs 255.25 apiece.

As of 1:42 pm IST, the shares of the company were trading at Rs 260.70 apiece, down by 3.64 per cent.

Reason Behind the Drop

This decline comes in the wake of Zomato’s announcement regarding a key board meeting scheduled for October 22, 2024. The company said in the regulatory filing that it will consider raising funds through a qualified institutional placement (QIP), a move that could dilute existing shareholding, which often causes apprehension among investors.

The QIP is subject to necessary regulatory and shareholder approvals.

Upcoming Financial Results

Alongside the QIP, Zomato will also announce its unaudited financial results for the second quarter of FY 2024-25 during the same meeting.

Both standalone and consolidated results are expected to shed light on the company's performance over the past quarter.

Market Cap and Metrics

Market Cap and Metrics Zomato’s current market capitalisation stands at Rs 2.27 lakh crore, with a price-to-earnings (P/E) ratio of 384.28. The stock is trading far below its 52-week high of Rs 298.25 but remains well above its 52-week low of Rs 101.25