New Delhi: Shares of Zomato dropped as much as 10 per cent during the early trade on Wednesday following block deals on the counter. The stock, however, recouped most losses as the session progressed.
The food delivery firm witnessed heavy trading volumes during the early trade amid the reported sale of 61 crore equity shares or a 7.8 per cent stake by Uber Technologies, which is likely to offload its entire holding in the company.
The data from exchanges suggested that the block deal has taken place. However, ETMarkets.com could not verify the same, along with the details of buyers and sellers.
#MarketAlert | Zomato has at least 211 mn shares change hands in over 30 trades #StockMarket #StocksToWatch… https://t.co/0xf4XdADrT— ET NOW (@ETNOWlive) 1659498082000
According to data from BSE, 66.58 crore equity shares of worth Rs 3,377.23 crore were traded as of 9.35 am. Similarly, 17.96 crore shares worth Rs 974.66 crore exchanged hands on National Stock Exchange (NSE), the data showed.
Following the development, shares of Zomato plunged about 10 per cent to Rs 50.25 on Wednesday, before recovering to Rs 54.35 at 9.35 am. The scrip hit the upper circuit of 20 per cent on Tuesday to settle at Rs 55.60.
In the bulk deal, Uber is reported to sell off its entire holding in Indian food delivery company Zomato for $373 million (Rs 2,939 crore), merchant banking sources said. The average price is likely to be Rs 48-54 apiece for the deal.
At the lower end of the band, which is a 13.6 per cent discount to Tuesday’s close, the total money to be raised through the sale stands at Rs 2,939 crore. BofA Securities is the sole book runner for the block deal.
Uber had picked up the stake in Zomato after the latter acquired its local food business Uber Eats in an all stock deal in 2020.