The shares of the large-cap company gained up to 3 percent after the company signed a share purchase agreement to acquire Paytm’s entertainment ticketing business for Rs 2,048 crore.
With a market capitalization of Rs 2.29 lakh crore, the shares of Zomato Ltd were trading at Rs 260.00 per share, increasing around 0.50 percent as compared to the previous closing price of Rs 259.95 apiece.
Reason for Rise:-
According to the company filing, Zomato Ltd has signed definitive agreements to acquire Paytm’s entertainment ticketing business which is used by customers in India to discover and purchase tickets for movies, sports, and events, this acquisition is valued at more than Rs 2,000 crore.
Moreover, this share purchase and subscription agreement (“SPSA”) is between One 97 Communications Limited (“OCL”), Wasteland Entertainment Private Limited (“WEPL”), and Orbgen Technologies Private Limited (“OTPL”), a wholly-owned subsidiary of One 97 Communications Limited.
Furthermore, Zomato will do a primary infusion into OTPL and WEPL by way of a preferential allotment for an amount equal to the slump sale consideration, which will be used to discharge the consideration payable to OCL for the slump sale above.
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Brokerage Coverage:-
Motilal Oswal, one of the well-known brokerages in India, gave a ‘Buy’ call on the stock with a target price of Rs 300 apiece, indicating a potential upside of 15 percent from Thursday’s price of Rs 260 per share.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 74 percent from Rs 2,416 crore in Q1FY24 to Rs 4,206 crore in Q1FY25, and during the same time frame, net profit magnified drastically by 12,550 percent from Rs 2 crore to Rs 253 crore.
International presence:-
The company has an international presence in 23 countries, including the UAE, Australia, New Zealand, the Philippines, Indonesia, Malaysia, the USA, Lebanon, Turkey, the Czech Republic, Slovakia, and Poland.
Company Profile:-
Zomato Limited is one of the most successful online meal service platforms in terms of food sales. Its services include meal delivery, eating out, loyalty programs, and more.
Written by:- Abhishek Singh
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