The shares of one of the leading online food delivery platform providers declined 5 percent to an intraday low of ₹157.70 per share after 19 crore shares worth ₹3,112 crore changed hands in the block deal window.
At 1:35 p.m, Zomato Ltd. shares were trading at ₹160.75 per share, down 3.19 percent from the previous close on the National Stock Exchange. The company has a market capitalization of Rs 1,41,646 crore.
On March 6, there was a significant block deal involving approximately 19 crore shares that changed hands in Zomato Ltd., representing a 2.1 percent ownership stake, with a total value of ₹3,112 crore. The shares were bought at an average price of ₹160 each, reflecting a 3.5 percent discount compared to Tuesday’s closing price.
According to CNBC-TV18’s report on March 5, Antfin Singapore Holdings Pte, an affiliate of China’s Ant Group, was considering selling up to a 2 percent stake in Zomato.
The block deal’s floor price was expected to be around ₹159.4 per share, bringing the overall transaction value close to ₹2,800 crore, according to the Moneycontrol report.
In the December quarter, Antfin Singapore Holdings Pte owned a 6.42 percent share in Zomato, contributing to the total foreign institutional investor holding of 54.88 percent. Domestic institutional investors held a 15.47 percent stake, while retail investors held a 27.98 percent stake in the company.
Zomato Limited is one of the leading online food service platforms in terms of the value of the food sold. Its offerings include food delivery, dining-out services, loyalty programs, and others. The company has a footprint across 23 countries and an average monthly food order of 10.7 million customers.
Zomato’s revenues increased by 69 percent year on year, from ₹1,948 crore in Q3FY23 to ₹3,288 crore in Q3FY24, while net profit increased, from a loss of ₹ 347 crore to a profit of ₹ 138 crore.
Zomato Ltd. shares have gained 64 percent in the last six months and a multibagger return of 198 percent in a year. For example, a shareholder investment of ₹ 1 lakh in the company a year ago, would be worth ₹2.98 lakhs.
Written by Omkar Chitnis
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