Shares of food delivery giant Zomato witnessed a sharp 6% rise during intraday trading on March 18, 2025, despite reports of a potential revival of an old insolvency plea against the company. The stock was trading at ₹216.35 on the Bombay Stock Exchange (BSE), reaching an intraday high of ₹216.50, showcasing investor confidence in the firm.
Insolvency Plea Details
The insolvency plea was filed by Nona Lifestyle Private Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC). The plea, initially dismissed in 2024 due to non-prosecution, has now been moved for restoration by the creditor. Nona Lifestyle claims dues of ₹1.64 crore, including interest, alleging delayed payments and incomplete delivery acceptance by Zomato. The matter was heard by the National Company Law Tribunal (NCLT) on March 17, 2025, and has been adjourned to April for further proceedings.
Zomato’s Response
Zomato’s legal counsel has opposed the restoration of the plea, citing a pre-existing dispute. The company has denied the allegations and maintained that the claims lack merit.
Market Performance
Despite the legal developments, Zomato’s shares have shown resilience, gaining over 4% in the past five trading sessions. While the stock is down 22% year-to-date, it has recorded a 36% increase over the past year, reflecting long-term investor optimism. Additionally, Zomato is set to join the NIFTY50 index on March 28, 2025, further boosting its market credibility.
The recent surge in Zomato’s stock price highlights investor confidence in the company’s growth potential, even amid legal challenges. As the case progresses, stakeholders will closely monitor the developments and their potential impact on the company’s operations and market performance.
