Zomato Stake Sale: Antfin Singapore Holding Sells 2% Stake for Rs 2,827 Crore

In a significant development, Antfin Singapore Holding, an affiliate of Chinese e-commerce giant Alibaba, has reduced its stake in online food delivery platform Zomato by 2 per cent through open market transactions. The sale, which involved offloading over 17.63 crore shares, was executed within a price range of Rs 160.11-160.40 per share, resulting in a deal size of Rs 2,827.08 crore.

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Reduced Shareholding

Following this transaction, Antfin Singapore Holding's shareholding in Zomato has decreased from 6.32 per cent in December 2023 to 4.3 per cent. This divestment comes after Alipay Singapore Holding, another arm of Alibaba, sold its entire 3.44 per cent stake in Zomato for Rs 3,337 crore in November 2023.

Morgan Stanley's Acquisition

Meanwhile, Morgan Stanley Asia Singapore Pte acquired a 0.65 per cent stake in Zomato, amounting to 5.68 crore shares. The shares were purchased at an average price of Rs 160.10 apiece, bringing the transaction value to Rs 909.55 crore. Details regarding other buyers involved in the transactions were not immediately available.

Zomato's Financial Performance

Zomato recently reported a consolidated net profit of Rs 138 crore for the third quarter ended December 31, 2023, driven by accelerated growth in quick commerce and steady performance in its core business. This marked a significant improvement compared to the Rs 347 crore net loss recorded in the same quarter of the previous fiscal year. The company's consolidated revenue from operations during the quarter stood at Rs 3,288 crore, up from Rs 1,948 crore in the corresponding period a year ago.

Market Reaction

On the day of the Antfin Singapore Holding transaction, Zomato's shares experienced a decline of 2.68 per cent, closing at Rs 161.60 apiece on the BSE.

The divestment by Antfin Singapore Holding and the acquisition by Morgan Stanley Asia Singapore Pte reflect the dynamic nature of the Indian stock market and the evolving investment strategies of global players. Zomato's improved financial performance and its position in the food delivery sector continue to attract investor interest, shaping the company's growth trajectory in the competitive Indian market.