Zomato Block Deal Update: SoftBank Likely To Sell Zomato Shares Worth Upto Rs 1,127.5 Crore

The share price of Indian food delivery platform Zomato will remain on investors' radar on Friday as Japan's SoftBank is seeking to offload a 1.1% stake in Zomato via a block deal worth Rs 1,127.5 crore, according to a CNBC-TV18 report.

An arm of Japan's SoftBank Group, SVF Growth (Singapore) Pte is reportedly expected to sell a 1.1% stake in a food-delivery company on Friday. As per the report, the floor price for Zomato's shares has been fixed at Rs 120.50 per piece, almost 1% lower compared to the stock's last closing price.

This is the third time since August this year that the Japanese tech giant SoftBank will offload its stake in Zomato, India's largest online food delivery service. The company sold a similar stake in October.

In August this year, SoftBank divested a 1.16% stake in Zomato for Rs 947 crore via an open market transaction. Global banking giant Citi has been appointed as the banker overseeing the transaction, said the sources close to the development.

According to reports, SoftBank received Zomato shares after the platform acquired Blinkit in August last year. There was a lock-in period of 12 months for these shares. Following the expiry of the lock-in period in August this year, SoftBank started selling the shares. Various reports have claimed that SoftBank was an investor in Blinkit.

It is worth mentioning that last month, Chinese payments group Alipay also sold its entire 3.44% stake in Zomato Ltd through block deals.

Zomato Ltd share price performance:

On Thursday, the share price of Zomato Ltd was up 2.44% at Rs 121.80 per share. At this share price, the company boasts a market capitalization of Rs 1,06,098.95 crore. The stock has gained 102% in this year so far. In the last one year, the returns for Zomato stock price have gained 88.98%.

The share price of Zomato Ltd has gained 21.80% in the last three months and has gained 63.40% in the last six months. In the last two years, the stock has fallen 12.88%.

Financials:

Zomato posted a net profit of Rs 36 crore for the September quarter. The online food delivery service provider reported a net loss of Rs 251 crore during the same quarter last year. Revenue for the period rose by 72% year-on-year (YoY) to Rs 2,848 crore compared to Rs 1,661 crore. On a sequential basis, the company's revenue was up by 18%, while the operating loss remained nearly the same.