SoftBank Plans Full Exit from Zomato, Selling Remaining Stake Via Block Deals

31 Aug 2023 , 01:33 PM

Japanese investment giant SoftBank is reportedly in the process of fully exiting its investment in the online food delivery platform Zomato. SoftBank recently sold nearly 10 crore shares of Zomato, equivalent to 1.17% of the company’s equity.

The investment firm currently holds around 2.18% remaining stake in Zomato, which it intends to sell through block deals in the coming months. SoftBank initially acquired its stake in Zomato in June of the previous year, purchasing it for approximately Rs 71 per share.

The company has witnessed significant profits from its investment in Zomato. While SoftBank and Zomato have yet to comment on the matter, reports indicate that the decision for the complete exit from Zomato aligns with SoftBank’s investment strategy.

Recently, approximately 10 crore shares of Zomato, accounting for 1.17% of the company’s equity, were traded, amounting to a total deal value of around Rs 947 crore. The transaction is believed to be facilitated by SoftBank’s SVF Growth Fund, which holds a substantial stake in Zomato.

SVF Growth (Singapore) Pte. Ltd., a subsidiary of SoftBank, had a 3.35% stake in Zomato, equivalent to around 28 crore shares. The move comes shortly after Tiger Global Management, another foreign institutional investor, completely divested its 1.44% stake in Zomato earlier in the week.

Tiger Global’s share sale resulted in earnings of Rs 1,123.85 crore. The venture capital firm sold approximately 12.34 crore shares or 1.44% stake in Zomato at an average price of Rs 91.01 per share.

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