After the transaction, Antfin Singapore Holding, which formerly owned a 4.3% share in Zomato, would be subject to a 90-day lock-in period before it may further reduce its equity. On Tuesday, Zomato’s shares, valued at Rs 5,438.50 crore, were sold in a block deal that was later expanded.
A report published by Moneycontrol states that the seller in this transaction is reportedly Antfin Singapore Holding, a subsidiary of Alibaba Group. In the transaction, 21 crore shares, or 2.4% of the online meal delivery business, were transferred.
Equity Dilution
Zomato’s shares saw a minor decline after the block deal, falling by more than 1%. The shares were trading on the NSE at Rs 259.20 as of 9.21 am. According to a CNBC-TV18 report, Antfin Singapore Holding sought to sell off a 2% stake in Zomato, valuing the shares at $556 million (Rs 4,650 crore).
According to earlier reports, Antfin intended to sell 1.54 percent of its shares for about $408 million. As per the latest equity update provided by Zomato, Antfin Singapore Holding possessed a 4.3% investment in the food delivery enterprise. Antfin will be subject to a ninety-day lock-in period after the share sale before it can begin any more equity dilution.
The financial results of Zomato
The sale of this interest comes in the wake of Zomato’s most recent quarterly results report, which revealed a sharp rise in net profit for the April–June quarter compared to the same period last year, jumping 126.5 times to Rs 253 crore.
According to the report, the rapid the commerce segment, Blinkit, had an increase in operational efficiency and higher platform fees for consumers, which drove this profit boom. Zomato’s positive price objectives and noteworthy 20% rise in share price over the last month are a result of its impressive quarterly performance and excellent growth possibilities in areas like rapid commerce.
Additionally, the stock has shown to be very profitable for investors, returning 112.5% so far this year and nearly 200% over the previous 12 months. According to the report, analysts at CLSA and UBS Securities believe that the stock will cross the Rs 300 threshold in the coming year, which might result in even higher returns.
