Shares of the foodtech giant Zomato extended their 5% rally from the prior day as the morning trade on Thursday (August 31) saw a 1% price increase. This uptick came after SVF Growth offloaded 10 crore equity shares in the company.
Read More: Zomato’s stock surges 5% amidst block deal frenzy, reaches INR 99.50 on BSE
At 9:26 AM on the National Stock Exchange, Zomato shares were being traded at INR 100.7. Despite the initial positive movement, the company’s share price declined to INR 99.45 by 12:27 PM, just a bit below the closing price of the previous Wednesday.
To recap, SVF Growth concluded a bulk deal by divesting a 1.16% equity stake in Zomato at INR 94.7 per share on August 30th. This move led to earnings of INR 947 crore for the affiliate of SoftBank. In terms of its ownership, SVF Growth held 28.71 crore shares, constituting a 3.35% stake in the company as of June 2023.
As a result of Zomato’s acquisition of the quick commerce startup Blinkit in August of the previous year, SoftBank acquired a share in the company. Following the conclusion of the one-year lock-in period, the prominent Japanese investment entity commenced its withdrawal from the startup. Current indications from reports indicate that the Japanese technology giant is pursuing a full divestment from the foodtech giant.
Read More: After INR 100 Crore Profit, SoftBank Eyes Full Exit From Zomato
Buyers in the transaction included Goldman Sachs Investments, Copthall Mauritius Investment Fund, BNP Paribas Arbitrage, Franklin Templeton Mutual Fund, Axis Mutual Fund, Kotak Mahindra Fund, Morgan Stanley Asia Singapore, and various other entities.
Throughout this year, the publicly listed food delivery behemoth has maintained a consistent upward trend. From the beginning of 2023, Zomato’s stock price has surged by 65% on the stock exchanges, surpassing the BSE and the NSE by a significant margin. The company’s shares recently achieved a fresh 52-week peak at INR 102.85, with frequent trading above the INR 100 milestone.
In the April-June quarter, the foodtech company also recorded a profit of INR 2 crore, in contrast to a loss of INR 250 crore during the corresponding period in the previous year. Additionally, there was a notable 70% year-on-year (YoY) growth in revenue, which reached INR 2,416 crore in the same timeframe.
Shifting gears to different developments, Tiger Global Management, another overseas investor in Zomato, divested its complete ownership stake of 1.44% in the company for INR 1,123.85 crore on August 28th. The shares were sold by Internet Fund III Pte Ltd through an open market transaction.
Read More: Tiger Global exits Zomato, sells 12.24 Cr shares for INR 1,123 Cr in open market transaction
Lately, the foodtech firm has initiated the implementation of a platform fee for its customers, playing a pivotal role in bolstering its profitability. Zomato is imposing a fee ranging from INR 2 to 3 per order, contingent upon the specific city. This platform fee has been introduced initially to customers in Tier II and III towns.
Read More: Zomato follows Swiggy’s lead, tests INR 2 platform fee to enhance profitability
