India Finance News

Zomato stock: Undisclosed shareholder to sell 61 crore shares in block deal tomorrow – The Economic Times

A day after the shares of were locked in 20 per cent upper circuit, a large shareholder of the food-tech company is trying to offload 61 crore shares. According to a report in ET NOW, the undisclosed Zomato shareholder would be selling shares in the range of Rs 48-54 apiece in a large block deal.

The Zomato shareholder is trying to raise $373 million from the block sale, the report said.

Meanwhile, citing sources, Reuters said Uber Technologies is the likely seller of the 7.8 per cent stake in Zomato via a $373 million block deal on Wednesday. The offer size of 61 crore shares worth $373 million is based on the lower end of a 48-54 rupee price range set for the block deal, a term sheet seen by Reuters stated.

Shares of Zomato ended 20 per cent higher at Rs 55.60 today. The stock has lost over 60 per cent of its market value in the tech sell-off on a year-to-date basis.

The block deal price of Rs 48-54 per share is in 2.8-13.6 per cent discount to Tuesday’s closing price. The ET Now report said a total of 61 crore shares would be on the block tomorrow for which BoFA is the sole book runner.

In its June quarterly report, the Deepinder Goyal-led company had yesterday reported narrowing of loss to Rs 186 crore while the consolidated revenue from operations surged 67.44 per cent YoY to Rs 1,413.90 crore.

“On the profitability front, the food delivery business hit an important milestone last quarter by getting to Adjusted EBITDA break-even. Contribution as a % of GOV increased to 2.8% in Q1FY23 as compared to 1.7% in Q4FY22 driven by improvements on both cost and revenue side, as we had indicated in the past,” Zomato CFO Akshant Goyal had said in a BSE filing.

Zomato is aiming for revenue growth along with reducing losses further in this quarter.

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