Softbank to pare 1.17% stake in Zomato through block deal

30 Aug 2023 , 09:23 AM

According to dealers, Japanese tech firm SoftBank is expected to sell roughly 10 crore shares, or 1.17% equity, in food delivery website Zomato in a block auction on Wednesday.

The acquisition price is estimated to be Rs 94 per share, bringing the total transaction value to approximately Rs 940 crore.

At the conclusion of the June quarter, SoftBank, through its fund SVF Growth Pte Ltd, owned approximately 3.35% of the company. The stake sale comes as the post-Blinkit deal’s lock-in period comes to an end.

Kotak Securities will act as the deal’s broker. As part of the M&A last year, Zomato issued new equity shares to all of Blinkit’s selling stockholders.

Following the sale, Zomato negotiated a 12-month lock-in period for these shares, as opposed to the six-month statutory lock-in period. The majority of these shares are held by three venture capital firms: Softbank, Sequoia, and Tiger Global.

Tiger Global departed Zomato yesterday by selling its whole investment through its affiliate Internet Fund III Pte. Axis Mutual Fund, Goldman Sachs, Citigroup, Morgan Stanley Asia, and Societe Generale all purchased stakes in the transaction.

At around 9.28 AM, Zomato was trading 3.70% higher at Rs 98.20, against the previous close of Rs 94.70 on NSE.

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