Zomato shares nudge higher after block deal; Softbank likely seller

Shares of Zomato Ltd inched higher during the early trading session on Friday amid the bulk deal reports. According to media reports,  Softbank is the likely seller of Zomato, which was looking to offload shares worth $135 million via a block deal during the trading session.

According to the data from National Stock Exchange (NSE), 9,35,69,368 equity shares worth Rs 1,127.51 crore were sold at average price of Rs 120.50 apeice. However, Business Today could not independently ascertain the details of buyers and sellers of the trade.

Following the heavy trading volumes as highlighted by NSE, shares of Zomato inched up to Rs 123.90, rising about 2 per cent from its previous close at Rs 121.80. The total market capitalization of the new-age internet company stood at Rs 1.05 lakh crore for the day.

Japan's SoftBank has been consistently reducing its holding in the food delivery platform Zomato. As of June 2023, the Japanese investor, represented by its affiliate, held a 3.35 per cent stake, which was subsequently brought down to 2.17 per cent by September 2023.

Also read: Zomato shares in focus as SoftBank likely to sell 1.1% stake today

In October, SoftBank, via its affiliate SVF Growth Singapore, executed a bulk deal, selling a 1.09 per cent stake in Zomato for Rs 1,040.5 crore. This followed a previous 1.17 per cent stake sale in Zomato in August, earlier this year.

Zomato reported a net profit of Rs 36 crore in the July-September 2023 period of the ongoing fiscal year. This marked the second successive quarter of profit. Zomato's revenue grew 71 per cent to Rs 2,848 crore in the September 2023 quarter.

Zomato's focus on profitability and strong growth has been attracting investors for quite some time. Shares of Zomato have rallied about 180 per cent from its 52-week low at Rs 44.35 hit in January 2023. The stock is hovering around its 52-week high at Rs 126.10, hit about a month ago.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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