Zepto Shares Plummet 30% in Unlisted Market Since April Despite Sec Approval for IPO

Zepto's Unlisted Shares Plummet 30% Amid IPO Plans

Shares of Zepto, a quick commerce startup, have fallen nearly 30% in the unlisted market since the start of April, despite the company receiving approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The stock, which traded at around Rs 58 per share at the beginning of April, has declined to nearly Rs 42 per share currently.

This decline comes even as Zepto moves ahead with plans for its public issue, aiming to raise between $800 million and $1 billion, or around Rs 7,500 crore to Rs 9,300 crore. The company is expected to work on its updated draft red herring prospectus and target a listing within 60-90 days.

Once listed, Zepto will become the only pure-play quick commerce company on Indian stock exchanges. The company had started preparations for its IPO in September 2024 after appointing bankers for its public market debut. Despite the decline in the unlisted market, Zepto's operations and expansion in the quick commerce segment have shown strong growth.

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According to sources, the company was delivering around 1.5 million to 1.7 million orders daily and is now fulfilling more than 2.5 million orders every day. However, investors continue to closely track the company's losses and valuation amid rising competition in the quick commerce space.

Jayant Mudhra, an independent research analyst, advised investors to wait for the company's draft red herring prospectus before taking a view on the business. He questioned the sharp decline in Zepto's unlisted share price despite optimism around the company's IPO plans, saying investors should avoid drawing conclusions before detailed financial disclosures become public.

The broader unlisted market has remained volatile amid continuing geopolitical tensions involving Iran and the United States, leading to cautious investor sentiment and lower trading activity. Experts said the primary market has also remained subdued because of the absence of major mainboard IPO launches, which has affected trading volumes in the unlisted space.

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Manan Doshi, co-founder of Unlisted Arena, said investor interest continues in marquee names such as Zepto, SBI Funds Management, and National Stock Exchange ahead of their proposed public offerings. The quick commerce sector has witnessed rapid growth over the past year, driven by rising consumer demand for faster deliveries and expansion across cities.

However, companies in the segment continue to face pressure on profitability because of high customer acquisition costs, dark store expansion, and aggressive discounting.