Chinese e-commerce giant Alibaba Group Holding Ltd is looking to sell a three percent stake in food delivery startup Zomato as part of a $200 million block deal on Wednesday (November 30), sources privy to the development told CNBC-TV18.
The floor price has been fixed at Rs 60 per share, at a 5.59 percent discount from the current market price (CMP), sources in the know told CNBC-TV18. Morgan Stanley India is the broker of the deal. Post the deal, Alibaba is likely to hold a 10 percent stake in Zomato.
Last week, Zomato's co-founder Mohit Gupta resigned from his position. Gupta, who had joined Zomato four-and-a-half-year back, was elevated to co-founder in 2020 from the position of CEO of its food delivery business.
Zomato reported a narrowing of its consolidated net loss to Rs 250.8 crore for the second quarter that ended September 2022. The company's consolidated net loss stood at Rs 434.9 crore in the year-ago period.
Revenue from operations increased to Rs 1,661.3 crore during the July-September quarter, as against Rs 1,024.2 crore in the corresponding period of the previous financial year, it said in a regulatory filing. However, its total expenses also rose to Rs 2,091.3 crore during the quarter under review, from Rs 1,601.5 crore a year ago.
