Zomato Shares Slump Following Block Deal Worth Rs 3,112 Crore; Ant Group's Arm Trims Stake, Says Report

Zomato, India's leading food aggregator, witnessed a 4% decline in its shares during the morning trade on March 6. The dip followed a massive Rs 3,112-crore block deal involving approximately 19 crore shares, representing a 2.1% stake in the company. The shares were acquired at an average price of Rs 160 apiece, marking a 3.5% discount from the previous closing price.

At 09:20 am, Zomato's shares were trading at Rs 160.80 per share on the National Stock Exchange (NSE). While the immediate identification of the buyers and sellers involved in the transaction remains uncertain, CNBC-TV18 reported on March 5 that Ant Group's arm, Antfin Singapore Holdings Pte, was reportedly looking to sell up to a 2% stake in the food and grocery delivery giant.

Antfin Singapore Holdings Pte, which initially held a 6.42% stake in Zomato, will see its ownership reduced to 4.32% post this stake sale. The block deal transacted at an average price of Rs 160 per share.

The block deal, estimated to have a floor price of Rs 159.4 per share, brings the total transaction value close to Rs 2,800 crore, as indicated by a report. The move by Ant Group's subsidiary comes at a time when Zomato is experiencing a surge in market sentiment.

Zomato's shares hit a historic high on March 4, propelled by the company's improved profitability and a robust growth outlook. Over the last three months, Zomato's stock has surged by 42%, solidifying its position as the most valuable new-age tech stock with a market capitalization of Rs 1.46 lakh crore.

However, the recent dip in share prices during morning trade saw Zomato's shares trading at Rs 160.40 per share, reflecting a cut of over 3%. Despite this temporary setback, Zomato has seen gains of nearly 210% over the past year.

Analysts suggest that the stake sale by Antfin Singapore Holdings Pte might be a strategic move, possibly unlocking capital for other ventures or aligning with the changing landscape of the food-tech industry. As Zomato continues to navigate market fluctuations, investors await further updates on the repercussions of this block deal.