Zomato share price rallies over 5% amid block deal buzz; Japan’s Softbank likely seller
Zomato share price rallied over 5% in early morning trade on Monday amid reports of a block deal in the shares. Zomato shares jumped as much as 5.56% to a high of ₹96.00 apiece on the BSE. As per CNBC-TV18 report, around 3.2 crore Zomato shares worth ₹288 crore changed hands in the block deal window at ₹90.10 per share.
However, the buyers and sellers in the block deal were not known. Earlier, it was reported that Japan’s Softbank was likely to sell food delivery aggregator Zomato shares through block deals as the lock-in period after the Blinkit deal ended on Friday, August 25. SoftBank holds 3.35% stake in Zomato, which it had received during the Blinkit deal for selling its holding to the company.
Zomato had last year 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 ended on Friday and the shares received by Softbank during the Blinkit deal will be unlocked for trading today, August 28. Also Read: Reliance share price volatile ahead of AGM; investors expect updates on Reliance Retail, Jio IPOs 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.
Other venture capital investors, Tiger Global and Sequioa also hold majority of these shares in Zomato. Zomato share price has rallied more than 56% this year so far, while the stock is up over 50% in the last one year period. At 10:05 am, Zomato shares were trading 2.49% higher at ₹93.20 apiece on the BSE.
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