SVF Growth Fund is set to divest a 1.1% stake or 93,569,368 shares in Zomato Ltd on Friday, October 20. The deal is expected to be offered at a floor price in the range of Rs 109.4 to Rs 111.65 per equity share, which could be either no discount or 2% lower than Thursday's closing price of Rs 111.65.
The offer size at the bottom end of the price range will fetch Softbank affiliate SVF Growth of about Rs 1,023.6 crore or $123 million. The sale is being managed by Kotak Securities Ltd on behalf of the investors.
Sources to @kothariabhishek : SoftBank's Svf Growth (Singapore) to sell 1.1% stake in Zomato
Offer price at Rs 109.4-111.65/sh, a discount of up to 2% to CMPOffer size is likely to be Rs 1023.6 cr pic.twitter.com/OZAxwXF7Cu— CNBC-TV18 (@CNBCTV18Live) October 19, 2023
Earlier on August 30, the Japanese conglomerate Softbank divested a 1.16% ownership stake in online food ordering company Zomato for Rs 947 crore.
Key buyers included major entities like Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Franklin Templeton Mutual Fund, Kotak Mahindra Mutual Fund, Societe Generale, Morgan Stanley Asia Singapore, Nomura Singapore, Goldman Sachs, and Ghisallo Master Fund LP.
Last week, Kotak Institutional Equities issued a positive outlook for the stock assigning a ‘buy’ call on Zomato, with a target price of Rs 125 per share. The domestic brokerage believes that Zomato’s gross merchandise value (GMV) growth has bottomed out in the quarter ended June 2023 (Q1 FY24) at 14% year-on-year and should now witness improvement from Q2 FY24 onwards.
First Published: Oct 19, 2023 7:03 PM IST
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