On Friday, the Japanese technology investor SoftBank executed a block deal, selling 9.35 crore shares of the foodtech giant Zomato for INR 1,127 crore.
According to NSE data, SVF Growth (Singapore) divested a 1.06% stake in the company at a price of INR 120.5 per share.
Invesco, ICICI Prudential Insurance, Goldman Sachs (Singapore), Kadensa Capital, Morgan Stanley Asia Singapore, and other entities acquired the shares that flooded the market.
At the end of September 2023, SVF Growth (Singapore) held a 2.17% stake in Zomato, owning 18.71 crore shares. However, in October, the investor sold a 1.09% stake in the company for a sum of INR 1,040.5 crore.
The recent sale of shares strongly suggests that the investor has likely fully divested from Zomato.
Engaging in a selling streak, the Japanese investor aims to capitalize on the upward trend in Indian equity markets and new-age tech stocks. Before this, SVF Growth had sold a 1.15% stake in Zomato for INR 947 crore in August 2023.
This aligns with the broader market trend, as international investors have been divesting their holdings in domestic new-age tech firms. In a recent development, Chinese tech giant Alipay exited Zomato by liquidating its entire 3.44% stake through various block deals, fetching INR 3,336.7 crore earlier this month.
In August, venture capital firm Tiger Global sold 12.24 crore shares of Zomato for INR 1,123 crore.
The ongoing streak of stake sales coincides with Zomato’s announcement of its second consecutive profitable quarter in the financial year 2023-24 (FY24). The foodtech giant witnessed a remarkable surge in its profit after tax, reaching INR 36 crore in the September quarter of FY24, marking an 18-fold increase from the INR 2 crore PAT recorded in the preceding quarter.
Continue Exploring: Zomato reports remarkable surge in profit, achieving second consecutive profitable quarter in FY24
Meanwhile, Zomato has been facing its share of challenges. Both Zomato and its competitor Swiggy have purportedly received notices for a combined Goods and Services Tax (GST) bill of INR 1,000 crore. This amount stems from the 18% tax imposed on the total collection from delivery fees since the commencement of their operations.
Continue Exploring: Zomato and Swiggy grapple with INR 1,000 Cr GST notices as tax authorities include delivery charges in revenue assessment
Zomato’s shares closed 1.27% lower at INR 120.15 on the NSE in yesterday’s trading session.