Zomato block deal: 1.17% stake sold for Rs 947 crore, SoftBank likely seller

Zomato’s shares opened 5% higher on August 30 after a 1.17% blockade agreement was made on the exchange.
About 10 crores of shares, or 1.17% of the shares, changed hands with an average floor price of Rs 94.70 per share. The total value of the transaction is approximately Rs 947 crore.
As of 9:48 a.m., Zomato’s shares were trading at Rs 98.05 on the NSE, up 3.54% from the previous closing price.
While it was not possible to immediately identify the buyer and seller involved in the transaction, CNBC-TV18 previously reported, citing sources, that SoftBank is looking to reduce its stake by 1.17%. in the food delivery giant is held through the venture capital fund SoftBank Vision. Fund. SoftBank owns a 3.35% stake in Zomato, which was issued in the Blinkit deal to sell its stake in the company, and the lockup period for those shares ended on August 25.
Wednesday’s share sale comes just days after another foreign institutional investor, Tiger Global Management, sold its entire 1.44% stake in Zomato on Aug. 28. The deal. brought Tiger Global a total of Rs 1,123.85 crore. On the other hand, Zomato focused more on profit and decided to implement platform fees. This Rs 2 platform fee will be applied regardless of the total value of the items in the cart. Zomato reported its first after-tax profit of Rs 2 crore in April to June.
Offshore brokerage Morgan Stanley, which remains “overweight” Zomato with a price target of Rs 115, sees platform fee plans in a positive direction. “If Zomato remains committed to this pricing structure, it has the potential to significantly improve its bottom line,” the company said.
HSBC also raised its price target for Zomato by almost 18% to Rs 120 while maintaining its ‘buy’ call. The company believes Zomato’s foray into hyperlocality will strengthen confidence in the long-term value of its Blinkit arm, currently valued at $5 billion. HSBC also expects hyperlocal to become a much larger business for Zomato in the long term.