Zomato sees 2% stake change hands in block deal, Softbank likely seller

Zomato’s share price opened 5% higher on August 28 after 184 million shares, representing a 2.14% stake, changed hands in a block deal.
While the buyer and seller were not immediately known, sources told Moneycontrol that Softbank will likely sell its shares as a lock-in period to investors once the Blinkit deal closes on Tuesday. August 25th.
SoftBank owns a 3.35% stake in Zomato, issued in the Blinkit deal to sell its stake in the company. Sources said Tiger Global and Sequoia Capital also received Zomato shares as part of the Blinkit deal, which could be put on the market.
At 9:45 am, the stock was listed at Rs 92.70 on the NSE, with a trading volume of 42 million shares. Meanwhile, Zomato has become increasingly profitable with the introduction of platform fees. Platform fee of Rs 2 is charged regardless of cart value.
In this context, Morgan Stanley remains “overweight” Zomato with a target of Rs 115 per share. “If Zomato remains committed to this pricing structure, it has the potential to significantly improve its bottom line,” he said.
For the first quarter of Fiscal Year 24, Zomato reported an adjusted EBITDA margin of 2.5% for the food delivery segment. Morgan Stanley expects this to hit 4%/4.7% in FY 26/27.
In the quarter ended June, Zomato made a profit after tax of Rs 2 crore for the first time. Because Zomato has been losing money for a while, the company is allowed to cover that loss with profits from future periods, according to Indian tax laws, experts said.
Meanwhile, Zomato’s revenue stood at Rs 2,416 crore, up 70.9% from a year ago, as demand growth rebounded thanks to slowing inflation and the strength of the platform’s loyalty program food delivery platform.