Zomato initiates liquidation process for two foreign subsidiaries, stock up 1.6%

Food delivery platform Zomato Ltd has initiated the process of liquidation for two of its subsidiaries -- Zomato New Zealand Media Pvt Ltd and Zomato Australia Pty Ltd -- on March 31, the company said in an exchange filing on Sunday.

These subsidiaries did not have any active business operations and their dissolution will not affect Zomato's turnover, the company added.

Zomato NZ Media is a wholly-owned subsidiary of Zomato, with a turnover of Rs 31.3 lakh and a net worth of Rs 2.23 crore as on March 31, 2022. The company's contribution to Zomato's turnover was 0.01%.

Zomato Australia Pty is a step-down subsidiary with a net worth of Rs 1.15 crore as on March 31, 2022.

Liquidation process of the two subsidiaries is expected to be completed within two months, subject to requisite approvals, the company said.

Last month, Zomato liquidated its step-down subsidiary Zomato Ireland Ltd in Jordan.

At 1305 hours on Monday, Zomato's scrip on BSE was trading 1.5% higher at Rs 51.8.