Zomato Ltd shares dropped nearly 2% on Tuesday amid reports that China’s Antfin Singapore Holdings offloaded a 1.54% stake in the food delivery giant through block deals.

The food delivery giant’s stock hit a low of Rs 257.10 on the BSE, marking a 1.98% decline, with a significant surge in trading volume.

A total of 19.86 crore shares were traded, amounting to a turnover of Rs 5,115.21 crore — a sharp increase compared to its two-week average.

Reports suggest that Antfin Singapore Holdings sold shares at a floor price of Rs 251.68 per share, valuing the transaction at Rs 3,420 crore or $408 million. However, CNBC-TV18 reported that some deals occurred at Rs 258 per share.

As of the June quarter, Antfin Singapore Holdings held a 4.30% stake in Zomato, equivalent to 37.38 crore shares.

Earlier in March, the firm had sold a 2.1% stake in Zomato at approximately Rs 160 per share, in deals worth $341.5 million.

At the close of December 2023, Antfin held a 6.42% stake in the company. In November 2023, China’s Alipay had also exited Zomato by selling its entire 3.44% stake.

Despite the current dip, Zomato shares have performed well, up 109% so far in 2024 and 190% over the past year.

The stock hit a record high of Rs 280 on Monday.

UBS continues to rate Zomato as a ‘Buy’ and has raised its target price to Rs 320 from Rs 260. Last week, Morgan Stanley maintained its ‘Overweight’ rating on Zomato with a target price of Rs 278.