Zomato shares jump 5% as 1.16% equity traded via block deal; Softbank likely seller
Zomato jumped 5% to day's high of Rs 99.60 on a likely block deal in the pre-opening trade on Wednesday which saw 1.16% stake changing hands.
ETNow reported at least six block deals involving 10 crore shares getting transacted. Japanese technology investor SoftBank Vision Fund is expected to have offloaded its shares in the food and grocery delivery company.
The block deal is expected to be worth approximately Rs 940 crore, indicating that SoftBank will sell the shares at Rs 94 apiece.
As of June 30, SoftBank Vision Fund held over 28.71 crore shares in Zomato, representing 3.35% stake.
SoftBank’s sale of Zomato shares follows the complete exit of the New York-based Tiger Global from the company. Tiger sold 1.44% stake, or 12.35 crore shares of Zomato on Monday for Rs 1,124 crore.
Shares of the Deepinder Goyal-led company, which rallied 73% in the last six months, ended 2.5% higher at Rs 94.65 on the BSE.
Last August, Zomato had issued fresh equity shares to all the selling shareholders of quick commerce platform Blinkit as consideration for its acquisition by Zomato.
Following the transaction, Zomato had negotiated a 12-month lock-in for these shares, compared to the statutory lock-in requirement of six months.
A majority of these shares are owned by three venture capital investors – SoftBank Vision Fund, Tiger Global and Sequoia Capital India (now Peak XV Partners).
Zomato had issued 62.9 crore shares at the time of Blinkit’s acquisition amounting to a stake of 6.88% on a fully-diluted basis.
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