India Finance News

Big block deal expected in Zomato tomorrow, Uber likely to sell off 7.8% stake – Moneycontrol

The offer is of around $373 million, with a price range of Rs 48-54 per share.

(Representative image: Reuters)

A big block deal is expected in food delivery aggregator Zomato on August 3, with Uber likely to sell off its 7.8 percent stake in the food delivery company via the transaction, according to a CNBC Awaaz newsbreak.

The offer is of around Rs 2,938 crore or $373 million, with a price range of Rs 48-54 per share. The offer size will be equivalent to 612 million or 7.8 percent of the existing total outstanding shares.

BofA Securities will be the sole bookrunner for the deal.

Meanwhile, Uber said in its earnings announcement on Tuesday that it had booked an unrealised gain (loss) of $707 million in the first half of 2022 on account of its Zomato holdings.

Zomato closed at Rs 56 on the BSE on Tuesday, up 20 percent during the day, after the company reported that its net loss narrowed 48 percent to Rs 186 crore in the June quarter. The company also said that its food delivery segment had broken even during the period.

The stock saw an intense sell off pressure last week as the one-year lock-in for pre-IPO investors ended on July 23. Moneycontrol had reported that the market would be keenly looking at how large shareholders like Uber and Delivery Hero react to the lock-in expiry.

Uber received a stake in Zomato when its sold off its food delivery arm in India to the company in a stock transaction in 2020.

Moneycontrol News

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