Shares of this company are trading at Rs. 112.75, flat from Rs. 111.70 at previous close. The company’s stock is trading 2% away from its 52 week high with a market cap of Rs. 97,015 crore.
The company had USD 123 million or Rs. 1,022 crore worth of stake sold by the venture capital arm of Japanese multinational investment bank.
According to numerous sources, Masayoshi Son-led Japanese tech giant Softbank intends to sell a portion of its ownership in popular food delivery service Zomato Ltd. (“Zomato”) in order to raise approximately Rs 1,022 crore.
“Softbank is looking to sell half of its residual position, around 1.1 percent stake, in Zomato via the block deal route,” said one of the sources.
SVF Growth (Singapore) Pte, a Softbank company, currently owns 2.22% of Zomato and in the deal the company will sell 1.11% stake, halving their exposure to the company. In the previous six months, the price of Zomato has increased by almost 106%.
The block deal plans were confirmed by a source, who also mentioned that Kotak Mahindra Capital served as the transaction’s broker. A floor price between Rs 109.4 and Rs 111.65 per share is anticipated for the deal, which could represent a discount of up to 2% from the previous closing price of Rs 111.65.
In a deal worth Rs. 947 crore at Rs. 94.7 per share in bulk deals, Softbank’s Vision Fund sold a 1.17% stake in Zomato in August. Tiger Global, a US-based private equity firm, sold the remainder of its Rs. 1124 crore stake in the business in August after reducing its stake by 2.34% the previous year.
Zomato, which was founded in 2010, is among the top online food service platforms in terms of the amount of food that is sold. Its services include delivery of food, dining-out, loyalty programs, among others.
Written by Sandeep R
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