Alibaba Group pares 3% stake in Zomato for Rs1,631 crore; stock adds ~1%

1 Dec 2022 , 09:24 AM

On Wednesday, China’s Alibaba Group raised Rs1,631 crore by selling a 3.1% stake in Zomato in an open market transaction.

According to bulk deals data from the National Stock Exchange, the Chinese conglomerate sold 26,28,73,507 shares at Rs62.06, a discount of more than 2% from Tuesday’s close price of Rs63.55.

This is the first sale by company’s existing shareholder in over three months. In August, venture capital firm Sequoia Capital offloaded a 2% stake, following Uber’s sale of the entire 7.8% stake and Tiger Global Management’s sale of a 2.3% stake.

In a separate transaction, Singapore-based investment fund Temasek Holdings acquired a 1.1% stake in Zomato for Rs608 crore. Temasek, a Singapore government-owned company, purchased 9,80,00,000 shares of the online food delivery aggregator at Rs62 each, a 2.4% discount to Tuesday’s close price.

As of 2022, Temasek owns and manages a net portfolio worth S$403 billion globally. Temasek’s purchases bolstered the stock, allowing Zomato to close 2.7% higher on the NSE at Rs65.25. However, the stock dropped more than 52% in 2022.

Even after the sale of some large investors’ stakes, the company remains the preferred one among the listed new-age technology companies due to India’s strong consumption growth prospects.

At around 9.27 AM, Zomato was trading at Rs65.85 up by 1% from its previous closing of Rs65.20 on the BSE. The scrip opened at Rs66.30 and touched intraday high and low of Rs66.55 and Rs65.55 respectively.

For feedback and suggestions, write to us at [e-mail]