Zomato surpasses HUL, Nestle in Sensex with a weightage of 2.77%

Zomato on Monday became the first new-age company to join the prestigious 30-share benchmark Sensex, replacing JSW Steel.

This milestone marks a significant achievement not only for Zomato but also for the Indian startup ecosystem, which is increasingly making its presence felt in the $5.2 trillion listed ecosystem.

According to Business Standard calculations, Zomato’s Sensex weightage stands at 2.77 per cent, ranking 12th among the 30 components, surpassing consumer giants like Hindustan Unilever, Maruti Suzuki, Asian Paints, and Nestle.

Its “promoter-less” status and recent Rs 8,500-crore QIP have increased its public float -- which is considered for computation of weights.

With a market capitalisation of Rs 2.64 trillion, Zomato ranks as the 28th most valuable company in India.

Sensex is tracked by passive funds with assets under management (AUM) of over Rs 2 trillion.

At present, domestic mutual funds offer 21 passive schemes with Sensex as the underlying.

The biggest of the lot is SBI Sensex ETF with an AUM of Rs 1.2 trillion.

Analysts expect Zomato’s shares to get a boost from index rebalancing in the coming months.

Key events include inclusion in the Nifty200 Momentum 30 Index on December 30.

Weightage increases in the Nifty Next 50 index in January and MSCI Standard Index in February. Later in March, Zomato is seen making it to the Nifty 50 index, which has an AUM of over Rs 4 trillion.

Analysts say all these events could lead to passive funds buying 7 per cent of Zomato’s float.

Zomato’s stock has surged 3.6 times since its Rs 9,375-crore IPO in July 2021, when shares were sold at Rs 76 apiece.

The stock currently trades at Rs 274.

The company’s inclusion in the Sensex was made possible after it was added to the futures and options (F&O) segment last month, along with 44 other companies.

This development coincided with the Sensex rebalancing exercise, paving the way for Zomato’s entry into the index.