Food delivery aggregator Zomato is expected to see a major block deal on Aug. 3 Wednesday, multiple reports said Tuesday. The offer of the Zomato block deal is about Rs 2,938 crore or $373 million. The undisclosed seller will put a total of 62.1 crore outstanding shares on the block, equivalent to a 7.8 percent stake in Zomato.
While there was no disclosure of who the seller was, CNBC TV18 reported that it is likely Uber BV, which also owns a 7.8 percent stake in Zomato. The price range of the deal will be Rs 48-54 per share, which is a discount of 2.8 percent to 13.6 percent from the current market price. BofA Securities will be the sole bookrunner for the deal, Moneycontrol reported.
Shares of Zomato and Uber will be watched on the back of the news tomorrow. Zomato shares closed 19.96 percent higher at Rs 55.60 on Tuesday, data on BSE showed. Amid an ongoing technical sell-off, Zomato shares have lost more than 60 percent of its value year on year.
The news comes at a time when Zomato’s shares rose nearly 20 percent in Tuesday’s trading after the online food delivery platform said its consolidated net loss narrowed in the June quarter. The food tech player posted a consolidated loss of Rs 186 crore for the quarter ended June 30, 2022, compared to a loss of Rs 361 crore in Q1FY22. Revenues during the quarter increased 68 percent year-on-year to Rs 1,414 crore.
Zomato’s adjusted Ebitda loss for the April-June quarter of the fiscal year had fallen to Rs 150 crore from Rs 170 crore in the same period a year ago. The company’s market valuation also climbed Rs 7,283.52 crore to Rs 43,777.52 crore on the BSE. “In terms of profitability, the food delivery business reached a significant milestone last quarter by reaching Adjusted EBITDA breakeven. Government contribution as a percentage increased to 2.8 percent in Q1FY23 compared to 1.7 percent in Q4FY22 driven by improvements on both the cost and revenue sides, as we had indicated in the past,” said Zomato CFO Akshant Goyal in a statement. application for BSE. on Monday.
“Now that the Zomato-Blinkit deal has been approved, we have three companies — Zomato, Blinkit and Hyperpure — in order of company size/impact. In addition to these three, we also have Feeding India. We are now in a life stage where we are maturing from running (more or less) one company to running multiple large companies,” Deepinder Goyal, founder and CEO of Zomato, wrote on the Slack channel of the company last week. company.
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