On August 20, Zomato shares worth ₹5,438.50 crore were sold in a block sale, as reported by Moneycontrol. The seller is thought to be Antfin Singapore Holding, an Alibaba Group unit.
The transaction, 21 crore shares were exchanged, representing a 2.4% interest in the online meal delivery company. The purchase was concluded at a floor price of ₹258 per share, which means a nearly 2% reduction from the stock’s last closing price.
On August 19, Mint reported that Antfin Singapore Holdings was trying to sell its 1.54% interest in Zomato in a $408 million block sale. According to the article, the shares would be sold at a floor price of ₹251.68 each.
Zomato’s shares fell by 0.97 percent to ₹259.62 on August 20 at 10:38 am on the National Stock Exchange, following the block deal announcement.
According to Zomato’s most recent shareholder data, Antfin Singapore Holding owns 4.3% of the company. The sale initiates a 90-day lock-in period during which Antfin is unable to perform any equity transactions.
How did Zomato perform?
The stake sale follows Zomato’s excellent quarterly financial report, which saw net profit jump 126.5 times to ₹253 crore in the April-June quarter, compared to the same period last year. The profit gain was credited to higher platform fees and improved operational profitability in Blinkit, the company’s fast commerce subsidiary.
CNBC-TV18 reported on August 19 that Antfin Singapore Holding was attempting to sell a 2% share in Zomato for $556 million (₹4,650 crore). The actual parties involved in the transaction were not immediately confirmed.
Zomato’s outstanding quarterly performance and growth opportunities in sectors such as rapid commerce have spurred bullish price targets, resulting in a 20% increase in its shares in the last month.
The stock has also provided significant returns to investors, with a 112 percent rise year to date and roughly 200 percent growth over the last year.
