Softbank plans to pare a 1.1% stake in Zomato worth Rs 1,024 via bulk deal

20 Oct 2023 , 10:10 AM

SoftBank, the Japanese tech behemoth, is expected to sell a 1.1% interest in meal delivery business Zomato through block sales on Friday through its affiliate SVF Growth Singapore Pte.

According to estimates, the offer price is set at roughly Rs 109.4-111.6 per share, aggregating to a transaction value of Rs 1,024 crore. At the conclusion of the third quarter, SoftBank owned 2.17% of the firm.

SoftBank sold around 1.17% of its stake in Zomato in a block sale valued at Rs 947 crore in August of this year. Nomura, Kotak Mahindra MF, Morgan Stanley, Invesco MF, Goldman Sachs, Franklin Templeton MF, Avendus, and Societe Generale, among others, purchased holdings.

SoftBank has been reducing its share in Zomato since the post-Blinkit transaction lock-in period expired in August. The Japanese investor, through its affiliate, owned a 3.35% interest as of the end of June.

Zomato granted additional equity shares to all of Blinkit’s selling investors as part of the M&A last year. Zomato negotiated a 12-month lock-in period for these shares after the sale, as opposed to the six-month statutory lock-in period.

The three venture capital firms: Softbank, Sequoia, and Tiger Global, hold majority of shares in Zomato.

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