A big block deal is expected in online food delivery platform Zomato on Wednesday, as Uber Technologies is expected to sell a 7.8% stake in the food-tech firm, reported Reuters.
The offer size of ₹2,938 crore or $373 million was based on the lower end of a ₹48-54 price range set for the block deal. The offer size will be equivalent to 612 million or 7.8% of the existing total outstanding shares.
BofA Securities is the sole bookrunner for the deal.
Block deals may only be conducted during a particular trading window in the early trading hours. As such, the deal must go through between 9.15 am and 9.50 am, i.e. the time when the trading window is open.
Zomato shares jump nearly 20% after June qtr earnings
Meanwhile, Zomato shares jumped nearly 20% today after the company said its loss in June quarter almost halved.
The stock climbed 19.96% to settle at ₹55.60 — its upper circuit limit — on the BSE.
At the NSE, it gained 19.97% to ₹55.55.
The company’s market valuation also climbed ₹7,283.52 crore to ₹43,777.52 crore on the BSE.
In traded volume terms, 803.27 lakh shares were traded at the BSE and over 52.88 crore shares at the NSE during the day.
On Monday, Zomato said its consolidated net loss in the first quarter of current financial year almost halved to ₹186 crore due to higher income.
The company had reported a net loss of ₹360.7 crore in the year-ago period.
During the quarter under review, total income rose to ₹1,582 crore from ₹916.6 crore in the corresponding period last year.
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