Zomato Shares Slide 4% as Ant Group's Arm Unloads 2.1% Stake in ₹3,112 Crore Block Deal

6 Mar 2024 , 10:55 AM

Zomato shares dropped 4% in opening trades on March 6 following a significant block deal where around 19 Crore shares, representing a 2.1% stake, were exchanged for ₹3,112 Crore.

The shares were acquired at an average price of ₹160 each, marking a 3.5% discount from the previous closing price. Currently, Zomato shares are trading at ₹158.50 on the NSE, reflecting a 4.40% decline compared to the previous close.

Antfin Singapore Holdings Pte, a subsidiary of China’s Ant Group, reportedly aimed to sell up to a 2% stake in Zomato, with a likely floor price of ₹159.4 per share, totaling a transaction value close to ₹2,800 Crore. Antfin previously held a 6.42% stake in Zomato, but after the stake sale, its ownership will reduce to 4.32%.

The block deal coincides with positive sentiment surrounding Zomato, which recently achieved a record high on March 4, driven by improved profitability and a robust growth outlook. Over the past three months, Zomato’s stock surged over 42%, solidifying its position as the most valuable new-age tech stock with a market capitalization of ₹1.46 Lakh Crore.

Zomato, founded by Deepinder Goyal and Pankaj Chaddah in 2008, is an Indian multinational restaurant aggregator and food delivery company. It operates in over 1,000 Indian cities and towns, competing primarily with Swiggy in the food delivery and hyperlocal space.

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