The stocks of the foodtech giant Zomato experienced a notable rally, climbing over 4% to reach the day’s peak at INR 119 on the BSE during Wednesday’s session. This surge propelled the company’s market capitalization beyond INR 1 lakh crore.
Zomato witnessed a surge in its shares following a trading activity where the company’s stocks were transacted at an average price of INR 112 per share, resulting in a total transaction value of INR 3,326 crore.
The participants involved in the transaction, including both buyers and sellers, remain unknown at this time.
Nevertheless, according to reports, Alipay Singapore Holding, a subsidiary of the Chinese e-commerce giant Alibaba’s affiliate, Ant Group, was exploring the sale of its complete 3.44% stake in the online food delivery company through a block deal.
Read More: Alipay to sell its entire 3.44% stake in Zomato in a block deal worth $400 Million
Zomato shares began trading with a 2% increase, opening at INR 116.15 compared to the previous day’s closing price of INR 113.80 on the BSE following the block deal buzz.
In recent months, Zomato witnessed foreign institutional investors (FIIs) selling stakes as the one-year lock-in period for investors who obtained shares through the company’s initial public offering (IPO) came to an end.
Last month, it was reported that Japanese tech investor SoftBank planned to offload a 1.1% stake in Indian foodtech major Zomato for at least INR 1,023.6 crore ($123 million). In August, the tech investor sold 1.16% of its stake in the foodtech major for a cumulative sum of INR 947 crore.
Read More: SoftBank to divest 1.1% Zomato stake for INR 1,023 Crore
In August, investment firm Tiger Global also exited the foodtech giant Zomato by selling 12.24 crore shares worth INR 1,123 crore, amounting to a 1.44% stake.
Read More: Tiger Global exits Zomato, sells 12.24 Cr shares for INR 1,123 Cr in open market transaction
Zomato reported its second consecutive profitable quarter, with profit after tax surging to INR 36 crore during the September quarter of the financial year 2023-24 (FY24). This was an 18-fold increase from PAT of INR 2 crore in the preceding quarter.
Read More: Zomato reports remarkable surge in profit, achieving second consecutive profitable quarter in FY24
Meanwhile, Zomato and Swiggy, the duo, reportedly received notices for a cumulative goods and services tax (GST) worth around INR 1,000 Cr, which is the 18% tax levied on the total amount collected by them as delivery fees ever since they started offering food delivery services.
