According to a report from CNBC-TV18, sources have indicated that Zomato’s shares experienced a decline of approximately 4 percent on Friday. This drop was attributed to concerns about a potential new wave of significant selling by specific private equity players. These players are considering selling off their holdings following the conclusion of their lock-in period subsequent to the Blinkit deal.
As per the mentioned report, Zomato’s initial investors, which include the Japanese multinational investor SoftBank, might divest their ownership in the company once their lock-in period for equity shares concludes following the Blinkit deal. The lock-in period for these investors is set to conclude on Friday, August 25th.
Zomato’s stocks experienced a decrease of approximately 4 percent, reaching INR 90.46 on Friday, before showing a minor rebound. This brought the company’s market capitalization to nearly INR 78,500 crore. In the preceding Thursday session, the stock had concluded at INR 93.79. Notably, Zomato’s shares have displayed a robust rally, surging over 110 percent from their lowest point in the past 52 weeks, which was recorded at INR 44.35 on January 25, 2023.
As of 1:10 pm on Friday, data from the National Stock Exchange (NSE) reveals that over 3.70 crore shares of Zomato, amounting to a value of INR 339 crore, were traded. Concurrently, at the same time, data indicates that 17.30 lakh equity shares valued at INR 15.8 crore changed hands on the Bombay Stock Exchange (BSE).
SoftBank holds a 3.35 percent ownership in Zomato, the food delivery aggregator. Additionally, the lock-in period for other investors such as Sequoia Capital and Tiger Global is set to conclude this week. Consequently, the shares obtained through the Blinkit deal are scheduled to become available for trading on Monday, August 28, as reported by CNBC-TV18.
In August 2022, Zomato successfully finalized the purchase of Blinkit, a rapid-commerce enterprise previously recognized as Grofers, along with its associated warehousing and supplementary services division. The company formally communicated this development via a filing with the exchange. Zomato had revealed its intentions regarding this acquisition in June 2022, subsequent to receiving approval from its board. The transaction, valued at INR 4,447 crore, was aimed at securing Blinkit.
SoftBank acquired Zomato shares at an implied value of INR 70.76 per share. Presently, the stock holds a position approximately 30 percent higher than its initial offering price, resulting in a substantial profit for SoftBank through the sale. Additionally, sources have indicated that investment banks are in the process of compiling a book to accommodate the growing interest in Zomato’s shares.