Zomato shares gain after 3.4% equity changes hands in block deal window
Post the transaction, Alibaba is now likely to hold a 10 percent stake in the company.
3.4 percent or nearly 27.4 crore shares of Zomato exchanged hands in the block deal window on Wednesday. Shares are edging higher in early trade post the deal.
Average selling price of the transaction was Rs 64 per share.
As per the announcement on Tuesday, Alibaba planned on selling a 3 percent stake in the company worth $193 million at an offer price of Rs 60 per share. The offer price was a 5.6 percent discount to Tuesday's closing price.
Post the transaction, Alibaba is now likely to hold a 10 percent stake in the company.
Morgan Stanley was the broker to the transaction.
Many large investors have pared stake in Zomato in recent times. In August this year, ride-hailing app Uber also exited from the company after selling its 7.8 percent stake. Others who have pared stake in the food-delivery service include Sequoia Capital India and Tiger Global Management.
For the September quarter, Zomato narrowed its consolidated net loss compared to last year while revenue increased to Rs 1,661.3 crore from Rs 1,024.2 crore in the year-ago period.
Zomato's co-founder Mohit Gupta resigned from his position last week after a four-and-a-half-year stint with the company. He was promoted to this position in 2020.
Shares of Zomato are currently trading 0.6 percent higher at Rs 63.95.
First Published: Nov 30, 2022 9:40 AM IST
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