Shares of Zomato Ltd declined as much as 10 per cent on the BSE in Wednesday’s opening deals as an undisclosed shareholder offered to sell 612 million shares at a discount, a stake matching that held by Uber Technologies, which owns 612.2 million shares in Zomato, according to data compiled by Bloomberg. However, the scrip, recouped most losses as the session progressed.
While there was no disclosure of who the seller was, CNBC TV18 reported that it is likely to be Uber BV, which also has a 7.8 per cent stake at Zomato. The price band of the deal will be at Rs 48-54 per share, which is a discount of 2.8 per cent to 13.6 per cent as against the current market price. BofA Securities will be the sole bookrunner for the deal, Moneycontrol reported.
According to data from BSE, 66.58 crore equity shares of Zomato worth Rs 3,377.23 crore were traded as of 9.35 am. Similarly, 17.96 crore shares worth Rs 974.66 crore exchanged hands on National Stock Exchange (NSE), the data showed.
Following the development, shares of Zomato plunged about 10 per cent to Rs 50.25 on Wednesday, before recovering to Rs 54.35 at 9.35 am. The scrip hit the upper circuit of 20 per cent on Tuesday to settle at Rs 55.60.
At the lower end of the band, which is a 13.6 per cent discount to Tuesday’s close, the total money to be raised through the sale stands at Rs 2,939 crore.
The news comes at a time when shares of Zomato soared nearly 20 per cent in Tuesday’s trade 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.
Adjusted EBITDA loss reduced to Rs 150 crore (-8 per cent of Adjusted Revenue) in the quarter under review as compared to Rs 220 crore (-15 per cent of Adjusted Revenue) sequentially.
Zomato’s revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, zoomed 67 per cent to Rs 1,414 crore in the June quarter against Rs 844 crore a year ago.
Zomato Ltd., the food-delivery company that went public last year, is appointing chief executive officers (CEOs) to at least four units, to lead its key business units and plans to rename itself Eternal Ltd. after winning approval to acquire another delivery startup.