30-Aug-2023
2 mins read
In a significant development for the online food ordering and delivery giant Zomato, its shares experienced a remarkable 5% surge, reaching Rs 99.60 on the National Stock Exchange (NSE). This surge came on the heels of a substantial exchange involving a whopping 100 million shares of the company through block deals, contributing to the company’s upward trajectory.
Block Deal Details
The block deal involved the trading of approximately 100 million shares, which translates to 1.2% of Zomato’s total equity, with a total valuation of Rs 947 crore. Notably, the average price per share during this noteworthy transaction was recorded at Rs 94.70.
Tiger Global’s Strategic Move
This surge in shares follows closely on the heels of Tiger Global’s Internet Fund III Pte divesting its ownership in Zomato. The divestment, amounting to 1.4% ownership, was executed through open market transactions. This move was prompted by the Blinkit merger, with Tiger Global making an impressive exit by selling its acquired stake for $136 million. The transaction involved the sale of approximately 12.35 crore shares at an average price of Rs 91.01 each, yielding a substantial sum of around Rs 1,124 crore. Notably, Tiger Global’s initial investment of $111 million in Blinkit translated to a remarkable profit of 22%.
Market Impact and Positive Momentum
Interestingly, Zomato’s stock was trading at Rs 99.15 by 10:00 AM, marking a notable rise of 4.7% – a significant contrast to the mere 0.45% uptick in the Nifty 50 index. It’s worth noting that the stock had recently achieved its 52-week peak at Rs 102.85 on August 7th.
Investor Interest and Participation
The participation of various entities as buyers in the acquisition of Zomato’s shares further underscores the positive sentiment surrounding the company. Axis Mutual Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, Founders Collective Fund, Morgan Stanley Asia Singapore, Societe Generale, and other significant players have all participated in this acquisition, pointing towards the enduring appeal of Zomato’s growth prospects.
A Bright Outlook
Overall, Zomato’s recent surge in shares and the successful exchange of a substantial number of shares through block deals reflect the company’s robust position in the market. With the divestment by Tiger Global and the active participation of various entities in acquiring shares, the trajectory of Zomato’s journey continues to be a focal point of interest for both investors and industry observers alike.