 "Zomato is now allowing its users to build multiple carts at one time")
Antfin Singapore Holding aimed to divest a 2% stake in Zomato, valuing the shares at $556 million (Rs 4,650 crore)
Zomato’s shares valued Rs 5,438.50 crore were sold in a block deal on Tuesday, with the deal later being upsized. Antfin Singapore Holding, a subsidiary of Alibaba Group, is believed to be the seller in this transaction, according to a report by Moneycontrol.
The deal saw the transfer of 21 crore shares, equating to a 2.4 per cent stake in the online food delivery company. These shares were sold at a floor price of Rs 258 each, representing a nearly 2 per cent discount from the stock’s previous closing price.
Following the block deal, Zomato’s shares experienced a slight drop, falling by over 1 per cent. As of 9.21 am, the shares were trading at Rs 259.20 on the NSE.
Antfin Singapore Holding aimed to divest a 2 per cent stake in Zomato, valuing the shares at $556 million (Rs 4,650 crore), according to a report by CNBC-TV18.
Earlier reports had indicated that Antfin planned to sell 1.54 per cent of its shares for approximately $408 million.
According to Zomato’s recent shareholding update, Antfin Singapore Holding held a 4.3 per cent stake in the food delivery company. Following the stake sale, Antfin will face a 90-day lock-in period before it can initiate any further equity dilution.
Zomato’s financial performance
This stake sale follows Zomato’s latest quarterly earnings report, which showed a dramatic increase in net profit, surging 126.5-fold to Rs 253 crore for the April-June quarter compared to the same period last year. This profit surge was fuelled by higher platform fees for consumers and enhanced operational efficiency in its quick commerce division, Blinkit, the report said.
Zomato’s strong quarterly performance and promising growth prospects in areas like quick commerce have led to optimistic price targets and a notable 20 per cent increase in its share price over the past month.
The stock has also proven to be highly rewarding for investors, with year-to-date returns of 112 per cent and a nearly 200 per cent gain over the past year. Analysts from firms such as CLSA and UBS Securities expect the stock to surpass the Rs 300 mark within the next year, potentially increasing returns further, the report stated.
First Published: Aug 20 2024 | 3:25 PM IST