Ant Group pares all stake in Zomato for Rs 3,336 crore

30 Nov 2023 , 10:13 AM

On Wednesday, China’s Alipay sold its entire 3.5% investment in meal delivery business Zomato in a block deal for around Rs 3,336 crore.

According to the exchanges’ block deal data, Alipay Singapore Pte has sold a 3.5% share in the firm. The deal was completed at a price of Rs 112.7 per unit.

Morgan Stanley and Bank of America were the advisors to the deal.

Goldman Sachs, Vanguard, Societe Generale, Fidelity Investments, Morgan Stanley, and ADIA were among the funds that picked up the shares.

With a 98.18% holding, public shareholders own the majority stake in Zomato. Mutual funds own around 10.5% of the firm, while foreign direct investment owns 17.08%. Meanwhile, as of September 30, foreign portfolio investors held 35.89% of the stock.

SoftBank of Japan sold a 1.1% share in Zomato, India’s largest meal delivery business, in October. Online ordering has increased quickly in recent years, pushing firms like Zomato to aggressively expand.

Alipay’s withdrawal from Zomato comes on the heels of other Chinese investors reducing their interest in Indian companies. China’s Antfin sold a 10.3% interest in Paytm, the Indian financial powerhouse, in August.

Zomato shares have nearly quadrupled this year as a result of stronger financial results in the previous two quarters. While the firm declared a surprise profit for the first time in the June quarter, results improved much more in the September quarter.

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