Info Edge shares rise over 3% as Zomato acquires Indian business of Uber Eats

Shares of Info Edge (India), that owns stake in Zomato, rose over 3% in intraday trade on Tuesday after Zomato acquired Indian business of Uber Eats for around Rs 2,485 crore ($350 million) in an all-stock transaction.

Reacting to the news, Info Edge shares touched an intraday high of Rs 2,676.1, rising 3.3% or 87 points, against the previous close of Rs 2,589.10 on BSE. Volume-wise, 0.08 lakh and 1.63 lakhs shares have changed hands on the BSE and NSE, respectively.

Info Edge share price was trading 4.93% lower from its 52-week high of Rs 2,736.6. Info Edge stock price has gained 2.76% in one week, 3% year-to-date and 69% in one year's period.

In a move to consolidate its business in the food delivery market, foodtech unicorn Zomato has acquired Uber's food delivery business in India. As a part of the deal, Uber Eats will seize to exist as a separate Uber brand in India and get a 9.99 per cent stake in the Indian food delivery and restaurant discovery platform Zomato. Post the acquisition, all the Uber Eats restaurants, delivery partners, and users of the Uber Eats will be automatically redirected to Zomato's platform.

The company in a regulatory filing submitted today said that it has reduced its shareholding in Zomato, which now stand at 22.71% on fully converted and diluted basis upon closing of the transaction.

Zomato has operations across 24 countries and serves more than 70 million users every month. Uber Eats had started business in May 2017, that quickly scaled to 26,000 restaurant partners and 41 cities across the country.

Edited by Rupa Burman Roy

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