Zomato Shares Gain After Rs 947 Crore Block Deal, SoftBank Likely Seller: Report


Zomato shares opened with gains on Wednesday following an early morning block deal. Around 1.17 per cent of shares of the online food aggregator changed hands at an average floor price of Rs 94.70 apiece, reported CNBC-TV18. Although the details of the buyer and seller involved in the transaction are public, the report citing sources said that SoftBank was looking to pare some of its stake in Zomato. 

At 10.38 am, shares of Zomato were trading at Rs 99.20 on the BSE, up 4.81 per cent from the previous close.

According to the report, as much as 10 crore shares, amounting to a 1.17 per cent stake in the firm changed hands in a Rs 947 crore deal. 

Earlier, on Monday, the Newyork-based Tiger Global’s Internet Fund III Pte sold its entire 1.4 per cent stake in Zomato through an open market transaction. The private equity firm first invested in Zomato in 2020. It also got Zomato shares as a part of the acquisition of quick grocery-delivery start-up Blinkit last year. The Monday deal is estimated at Rs 1,123.85 crore.

On the other hand, the Japanese investment giant owns a 3.35 per cent stake in Zomato through its venture capital fund, SoftBank Vision Fund, also acquired after the Blinkit deal. The lock-in period to hold these stakes ended on August 25. 

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Meanwhile, Zomato is reportedly shifting its focus towards generating profits, as it introduced a platform fee of Rs 2, which will be applicable regardless of the total value of items in the shopping cart. In the April-June period, Zomato reported its first-ever profit after tax (PAT) of Rs 2 crore.

Brokerage firm Morgan Stanley maintained a positive outlook on Zomato, rating it as ‘overweight’ with a price target of Rs 115. The introduction of the platform fee is seen as a favorable move by the firm, suggesting that if Zomato remains committed to this fee structure, it could substantially improve its profitability.


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