Motilal Oswal Mutual Fund initiated an open market transaction on Monday, shedding 4.5 crore shares of the leading foodtech company Zomato.
According to data from the NSE, the mutual fund divested the shares at INR 138.15 per share in a block deal totaling INR 621.6 crore.
According to the shareholding information of the foodtech giant, Motilal Oswal Flexi Cap Fund possessed 15.94 crore shares, representing a 1.86% stake in Zomato as of the end of the December quarter in 2023.
The shares that inundated the market were acquired by BNP Paribas, Citigroup, Goldman Sachs, Morgan Stanley, and Societe Generale.
Societe Generale picked up 3.3 Cr shares at INR 138.15 apiece, while Goldman Sachs Investments (Mauritius) acquired 45 Lakh shares at the same price.
Morgan Stanley Asia (Singapore) acquired 39 Lakh shares, Citigroup Global Markets (Mauritius) bought 24 Lakh shares, and BNP Paribas Arbitrage obtained 12 Lakh shares, all priced at INR 138.15 each.
Amidst the block deal, Zomato shares saw a nearly 3% dip during early Monday trading. The stock eventually closed the session 4.44% lower at INR 133.40 on the BSE.
Continue Exploring: Zomato’s stock dips 3% following INR 622 Cr block deal transaction
The development comes in the wake of brokerages HSBC, Goldman Sachs, and Jefferies raising their price targets (PTs) on Zomato. This adjustment is grounded in the anticipation of strong growth in Zomato’s food delivery and quick commerce verticals.
Continue Exploring: Zomato’s bull run continues as Goldman Sachs and Jefferies raise price targets post HSBC’s lead
Goldman Sachs has adjusted its price target (PT) for Zomato, raising it to INR 160 from the previous INR 130. Similarly, Jefferies has increased its price target to INR 190 from INR 165, and HSBC has raised its target to INR 150 per share from the earlier INR 140.
Zomato achieved its first profitable quarter in Q1 FY24 and continued the trend with a profitable Q2. The company’s profit after tax (PAT) surged 18 times, reaching INR 36 crore in the September quarter, compared to INR 2 crore in the previous quarter.
The impressive financial figures have sparked a significant uptrend in the share price of the Deepinder Goyal-led startup. Over the past year, the stock has soared by 150.52%, and on a year-to-date (YTD) basis, it has registered a growth of 7.84%.
