Zomato tumbles ~4% as Sequoia pares stake in the company

29 Aug 2022 , 12:29 PM

Sequoia Capital, an American venture capital firm, has cut its stake in food tech business Zomato Limited from 6.4% to 4.4%.

Sequoia Capital India Growth Investment Holdings I and SCI Growth Investments II sold 171.9 crore shares, or 2.01% of the firm, according to a statement submitted before the stock markets.

The deal was completed in two tranches via open market transactions: September 6, 2021, to October 14, 2021, and June 27, 2022, to August 25, 2022.

Sequoia will retain a 4.4% stake in Zomato following the transaction.

Zomato shares have lost more than 56% of their value year to date, although gained 48% in the one-month period.

Earlier, Uber Technologies also exited its stake in Zomato by selling its entire 7.78% stake at an average price of Rs50.44 per share.
Following Sequoia’s sale of the stake, Fidelity’s emerging market fund and ICICI Prudential.

At around 12.39 PM, Zomato was trading at Rs59.35 down by Rs2.55 or 4.12% from its previous closing of Rs61.90 on the BSE. The scrip touched intraday high and low of Rs60.55 and Rs58.10 respectively.

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