Zomato saw its stock price surge by over 5% during early trading on Wednesday, driven by a block deal linked to the foodtech giant. This upward momentum led the company’s shares to reach a peak of INR 99.50 each on the BSE.
Based on data from Bloomberg, a block deal took place on the stock exchanges involving around 10 crore Zomato shares, which corresponds to a 1.17% ownership in the company. These shares were traded at an average floor price of INR 94.70 per share. The overall worth of this transaction tallied up to roughly INR 947 crore.
After the lock-in period for Blinkit ended on August 25, Zomato Ltd. encountered an alteration in its equity on Monday, which also impacted 2.14% of its shares.
Read More: Zomato shares surge by 6% in response to high trading activity and platform fees
As indicated by significant trade data from Bloomberg, a sum of 18.4 crore shares were exchanged on Monday, spanning a price range between INR 92.20 and INR 94.00. The individuals or entities responsible for buying and selling have not been revealed as of now.
In the past week, news emerged indicating that SoftBank was considering the possibility of selling extra shares of Zomato through block trades.
Read More: Zomato faces 4% share drop as speculation grows on SoftBank’s stake sale
SoftBank, having invested in Blinkit as well, obtained Zomato shares as part of Zomato’s acquisition of the quick-commerce startup in August of the previous year. This acquisition deal amounted to INR 4,447 crore. The shares acquired by SoftBank were subjected to a lock-in period lasting 12 months.
On Monday, investment firm Tiger Global made its exit from Zomato through open market transactions, selling 12.24 crore shares which represented a 1.44% stake in the company. Tiger Global’s Internet Fund III Pte Ltd conducted the sale in multiple parts at an average price of INR 91.01 per share. The total value of these transactions, based on BSE bulk deal data, amounted to INR 1,123.84 crore.
Read More: Tiger Global exits Zomato, sells 12.24 Cr shares for INR 1,123 Cr in open market transaction
During the first quarter of FY24, Zomato reported a consolidated profit after tax (PAT) of INR 2 crore, marking a significant turnaround from the net loss of INR 186 crore recorded in the same quarter of the previous fiscal year.
Read More: Zomato turns profitable in Q1 FY24, reports INR 2 Cr consolidated PAT
In the initial quarter of FY24, the gross order value (GOV) for Zomato’s food delivery segment reached INR 7,318 crore, indicating an increase from INR 6,425 crore achieved during the same period in the previous fiscal year.
In pursuit of profitability, the foodtech leader has expanded the scope of its platform fee while simultaneously increasing its amount. In its earlier phase, Zomato levied a fee of INR 2 per order for select users. Presently, the company has raised the platform fee to INR 3 for particular users situated in Tier II cities, as disclosed by SnackFax. Meanwhile, the fee for the majority of users in metropolitan cities remains steady at INR 2.
Read More: Zomato extends platform fee to wider user base, implements INR 3 charge in select cities