Uber Technologies on August 3, Wednesday, sold its 7.8 per cent stake in food delivery aggregator Zomato via a big block deal on stock exchanges, a report said. The deal by Uber was executed at a value of $392 million, the report said.
As per a report by Reuters quoting two people familiar with the deal, the Zomato block deal was executed at 50.44 rupees per share. This comes a day after it was reported that ride-hailing firm Uber will sell its stake of at least 612 shares at Zomato. However, neither Uber nor Zomato issued a statement regarding the development till the time of writing this article.
“As per Reuters calculations, the stake sale by Uber was worth Rs 30.87 billion ($392 million),” said the report. One of the persons cited above said the stake was bought by around 20 global and Indian funds, including Fidelity, Franklin Templeton and India’s ICICI Prudential.
Shares of Zomato Ltd declined as much as 10 per cent on the BSE in Wednesday’s opening trade on the news of the mega block deal that broke on Tuesday. The stock slumped 9.62 per cent to Rs 50.25 on the BSE. However, the scrip, recouped most losses as the session progressed. Zomato shares were trading at Rs 53.40 on Wednesday at 1300 IST, down by 3.96 per cent from its previous close of Rs 55.60.
BofA Securities was the sole bookrunner for the transaction conducted on Wednesday. Franklin and ICICI declined to comment on the matter, while Fidelity could not be reached for any comments, Reuters reported.
Shares of Zomato on Tuesday had jumped nearly 20 per cent to settle at Rs 55.60 on the BSE after the online food delivery platform said its consolidated net loss narrowed in the June quarter. The food tech player posted a consolidated loss at Rs 186 crore for the quarter ended June 30, 2022, as compared to a loss of Rs 361 crore in Q1FY22. Revenues during the quarter jumped 68 per cent year-on-year to Rs 1,414 crore.
Zomato’s adjusted Ebitda loss for the April-June quarter of the fiscal was down to Rs 150 crore from Rs 170 crore in the year-ago period. The company’s market valuation also climbed Rs 7,283.52 crore to Rs 43,777.52 crore on the BSE. “On the profitability front, the food delivery business hit an important milestone last quarter by getting to Adjusted EBITDA break-even. Contribution as a percentage of GOV increased to 2.8 per cent in Q1FY23 as compared to 1.7 per cent in Q4FY22 driven by improvements on both cost and revenue side, as we had indicated in the past,” Zomato CFO Akshant Goyal said in a filing on BSE on Monday.