Zomato shares fell around 7% in the afternoon deals on Monday. The stock had a good start to the day, rising more than 3% after the announcement of a deal to buy quick commerce delivery firm Blinkit Commerce Pvt Ltd, a quick commerce company for Rs 4,447.5 crore.
The quick commerce service brand Blinkit is operated by Blink Commerce. Grofers was its previous name. Quick commerce refers to the delivery of items in under 30 minutes.
On the BSE, the stock of the Zomato opened 3.77 per cent higher at Rs 73 per share, however, it didn't last, and as the trade progressed, it turned negative. It hit an intraday low of Rs 65.05 in the final hour of trading, down 7.53 per cent on the bourse. Whereas, on NSE in intraday trade, it reached a high of Rs 72.70 and a low of Rs 65, mirroring similar movements. Finally, the stock closed 6.40 per cent lower on the BSE at Rs 65.85 and 6.60 per cent lower on the NSE at Rs 65.85.
As part of its goal to engage in rapid commerce businesses, on Friday after market hours, Zomato announced that it will acquire the Blink Commerce Pvt Ltd for Rs 4,447.48 crore in a share swap agreement. In a meeting held on Friday, the board of the company gave its approval to buy up to 33,018 equity shares of Blink Commerce Pvt Ltd from its shareholders for a total purchase price of Rs 4,447.48 crore, or Rs 13.45 lakh per equity share.
According to the filing, the transaction will be carried out through the issuance and allotment of up to 62.85 crores fully paid-up equity shares of Zomato, with a face value of Rs 1 each, at a preferential price of Rs 70.76 per equity share. The company currently holds 1 equity share and 3,248 preference shares in Blink Commerce Pvt Ltd.