SoftBank likely to sell Zomato shares via block deal: Report
CNBC-TV18 reported. SoftBank owns 3.35% stake in Zomato. It had received Zomato shares during the Blinkit deal for selling its holding to the company.
Last year, Zomato had issued fresh equity shares to all the Blinkit’s selling shareholders as consideration for the M&A, at an implied value of ₹70.76 per share. As per the deal, the lock-in period of 12-months ends today and the shares received by Softbank during the Blinkit deal will be unlocked for trading on Monday, August 28. An analysis by JM Financial on the cost of acquisition of shares owned by pre-IPO and ex-Blinkit shareholders of Zomato suggests they are currently sitting on substantial gains on their investments, a large chunk of which is, however, unrealised.
Also Read: Zepto raises $200 million, becomes first unicorn of 2023 JM Financial believes at least some of them would be eager to book profits post the recent run-up in the stock. “Given the quantum of these gains and basis past actions of these VC/PE/Chinese shareholders in the listed internet names that recently went public (Exhibit 7) we believe it is fair to say that a sizeable proportion of Zomato’s stock could be available for trade in large blocks in a not-so distant future," JM Financial said in a report dated August 18. A majority of these shares are owned by just three venture capital investors, namely, Softbank, Tiger Global and Sequioa.
Zomato share price has rallied more than 52% this year so far, while the stock is up over 45% in the last one year period. At 2:20 pm, Zomato share price was trading 3.41% lower at ₹90.59 apiece on the BSE. Catch Live Market Updates hereGet the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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