Shares of food delivery giant Zomato have risen sharply on Wednesday after rising for 7% in the previous trading session. At 12:50 pm, shares of Zomato were up 4.12% to Rs 227.35 on the Bombay Stock Exchange (BSE). Notably, Zomato shares are on an upward streak despite the possibility that it can face an old solvency plea.

The food delivery giant's stock has risen by nearly 9% over the last five trading sessions. Increasing trading volumes and technical chart patterns suggest that the company's shares may see further gains in the near term.

According to some market experts, Zomato's stock could experience strong demand ahead of the Indian Premier League (IPL) 2025, set to begin on March 22. This period typically witnesses a surge in food and grocery deliveries. With BlinkIt leading the quick commerce sector, Zomato may aim to maximize its profits during the two-month-long tournament.

Despite its recent gains, Zomato's stock remains down by 3% over the past month, 19% in six months, and 18% since the start of the year. However, it has still posted a 44% increase over the past year.

Reports indicate that Nona Lifestyle Private Limited has approached the law tribunal to reinstate an insolvency plea it had initially filed against Zomato under Section 9 of the Insolvency and Bankruptcy Code (IBC) in 2024. The company alleges that Zomato defaulted on payments, delayed transactions, and failed to accept full delivery of goods. It is seeking ₹1.64 crore (including interest), but Zomato’s legal team has refuted the claim, citing a "pre-existing dispute."