Zomato shares rise on block deal, SoftBank potentially selling
08 Dec 2023
In a shocking turn of events on Friday, 8 December 2023, Zomato Ltd. witnessed a surge in its shares during the early trading session, fueled by reports of a substantial bulk deal. Media sources suggest that SoftBank is the probable seller, aiming to offload shares totaling $135 million in a block deal.
According to data from the National Stock Exchange (NSE), a staggering 9,35,69,368 equity shares, amounting to Rs. 1,127.51 crore, were transacted at an average price of Rs. 120.50 each.
In response to the robust trading volumes, Zomato’s shares experienced an uptick, reaching Rs 123.90, marking a 2% increase from their previous closing value of Rs. 121.80. The new-age internet company’s total market capitalization for the day stood at Rs. 1.05 lakh crore.
Notably, SoftBank from Japan has consistently diminished its stake in Zomato. As of June 2023, the Japanese investor, represented by its affiliate, held a 3.35% stake, subsequently reducing it to 2.17% by September 2023.
This trend of reduction follows a bulk deal in October 2023, where SoftBank, through its affiliate SVF Growth Singapore, sold a 1.09% stake in Zomato for Rs. 1040.5 crore. This move was preceded by a 1.17% stake sale in Zomato in August 2023.
In the financial realm, Zomato reported a net profit of Rs. 36 crore in the July–September 2023 period, marking the second consecutive quarter of profit. During the same period, Zomato’s revenue witnessed an impressive 71% growth, reaching Rs. 2,848 crore.
Zomato’s steadfast focus on profitability and sustained growth has consistently attracted investor attention. The shares have railed impressively, witnessing a remarkable 180% surge from their 52-week low of Rs. 44.35 recorded in January 2023. Currently, the stock hovers around its 52-week high at Rs. 126.10, established in early November.
As the market observes these significant developments, the trajectory of Zomato’s shares continues to capture the attention of both investors and industry experts alike.
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