Zomato Shares Drop 4.6% After Block Deal Transaction

Zomato Shares Drop 4.6% After Block Deal Transaction

VoM News Desk | March 6, 2024 | 10:44 AM IST | Breaking News | Follow on Google News

Zomato Shares Drop 4.6% After Block Deal Transaction/Reuters

Zomato Shares Drop 4.6% After Block Deal Transaction

Shares of Zomato, a prominent player in the food delivery sector, experienced a 4.6% decline in early trade, settling at ₹158.25 per share. This downturn followed a substantial block deal involving 19 crore shares, equivalent to 2.2% of the company’s total equity. The transaction’s estimated value was approximately ₹3,112 crore, with the identities of the buyers and sellers remaining undisclosed.

Antfin Singapore Holdings Pte’s Stake Sale

Anticipated earlier, China-based Ant Group’s subsidiary, Antfin Singapore Holdings Pte, was reportedly involved in the block deal, intending to sell shares worth ₹2,800 crore, constituting a 2% stake in Zomato. The floor price for this transaction was set at ₹159.4 per share, reflecting a 4% discount compared to Tuesday’s closing price.

Zomato’s Financial Performance and Market Dynamics

In the December quarter of FY24, Zomato disclosed a consolidated net profit of ₹138 crore, a noteworthy improvement from the ₹347 crore net loss reported in the corresponding period of the previous year. The sequential net profit surge reached an impressive 283%. The company’s revenue from operations for the same quarter increased by 69% YoY, reaching ₹3,288 crore. Notably, Zomato’s food delivery gross order value (GOV) expanded by 25% YoY, with expectations of continued growth at a rate exceeding 20% YoY. Further acceleration is anticipated in case of unexpected market share gains and a resurgence in macro consumer demand.

VoM News Desk

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