Ride-hailing app Uber on Wednesday sold its entire 7.78 per cent stake in Zomato in a bulk deal on the BSE, while two other institutional investors - Fidelity and ICICI Prudential Life Insurance - bought stakes in the food delivery giant's stock.
As per the BSE filing, Uber sold 61.22 crore shares of Zomato, that it had earned in 2020 by selling Uber Eats in an all-stock deal, today at a price of Rs 50.44 per share.
Fidelity's emerging market fund bought 5.44 crore shares of Zomato today in the bulk deal at an average price of Rs 50.26. ICICI Prudential Life Insurance bought 4.5 crore shares at Rs 50.25 per share.
The development comes on a day when the Zomato scrip witnessed a nearly 20 per cent surge to close at Rs 55.60 apiece on the BSE.
Bofa Securities is the sole book runner for the block deal.
It can be noted that Uber picked up the stake in Zomato after the latter acquired its local food business Uber Eats in an all stock deal in 2020.
Later, Zomato listed on the bourses and the stock had been under selling pressure for the past few weeks till the news of halving of losses and business reorganisation heightened buyers' interest in Tuesday's trade.
Zomato's shares on Wednesday closed 0.36 per cent lower at Rs 55.40 apiece on BSE. The food delivery giant had on Monday said that its quarterly loss narrowed helped by an increase in orders for restaurant meals on its platform. Zomato's net loss was at Rs 186 crore for the quarter ended 30 June, 2022. The company had posted a net loss of Rs 356 crore year ago, it said in a regulatory filing.
Its revenue from operations came in at Rs 1,413.9 crore, up 67.44 percent against Rs 844.4 crore logged in the year-ago quarter.