Zomato, the foodtech industry leader, saw a slight uptick in its stock during the initial trading hours this Friday, propelled by a substantial block deal.
Approximately 1.06% ownership of the company, equivalent to 9.35 crore shares, was traded in the block deal. The shares were transacted at an average price of INR 120.5 each, resulting in a total transaction value of INR 1,127 crore.
Nevertheless, the identities of the individuals or entities involved as buyers and sellers in these transactions remain undisclosed.
In the initial trading session of the day, Zomato shares were priced at INR 123.6 each on the BSE, reflecting a 1.3% increase from its closing price in the previous session.
According to various media sources, it was reported that SoftBank’s SVF Growth, a Japanese tech investor, is considering selling an additional 1.1% stake in Zomato through a block deal valued at $135 million.
Read More: SoftBank considers divesting another 1.1% stake in Zomato for $135 Million
According to the reports, SVF Growth is anticipated to divest the shares at INR 120.5 each, representing a modest discount compared to Zomato’s closing price of INR 121.8 on the BSE on Thursday.
By the end of the September 2023 quarter, SVF Growth (Singapore) Pte Ltd held a 2.17% stake in Zomato, totaling 18.71 crore shares. Following that, in October, the Japanese investor sold a 1.1% stake, or 9.36 crore shares, in the foodtech major.
In August of this year, SVF Growth disposed of its 1.15% stake, equivalent to 10 crore shares, in Zomato, reducing its ownership in the company to 2.17%.
Last week, an international investor, Alipay, exited Zomato by selling its entire 3.44% stake in the company through multiple block deals, totaling a cumulative value of INR 3,336.7 crore. Despite the exit, these shares found new ownership among investors like Morgan Stanley and Fidelity Investment.
Read More: Alipay to sell its entire 3.44% stake in Zomato in a block deal worth $400 Million
In August, investment firm Tiger Global exited Zomato by selling 12.24 crore shares worth INR 1,123 crore, thereby relinquishing a 1.44% stake in the company.
Read More: Tiger Global exits Zomato, sells 12.24 Cr shares for INR 1,123 Cr in open market transaction
Zomato posted its second consecutive profitable quarter, witnessing a significant surge in profit after tax to INR 36 crore in the September quarter of the financial year 2023-24 (FY24). This marked an 18-fold increase from the 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 crore. This is the 18% tax levied on the total amount collected by them as delivery fees since they commenced offering food delivery services.