Big Block Deal at Company Likely Tomorrow, No Seller Name Revealed for Zomato Share Sale

On August 3, Wednesday, a significant block sale is anticipated for the food delivery aggregator Zomato, according to numerous reports on Tuesday. The block sale offer from Zomato is in the neighborhood of Rs 2,938 crore, or $373 million. The unknown seller would offer for sale 62.1 neighborhoodcrores of the existing shares, or 7.8% of Zomato, in total.

Although the seller's identity was not disclosed, CNBC TV18 stated that it is most likely Uber BV, which also owns a 7.8% interest in Zomato. The price range for the transaction would be Rs 48–54 per share, which represents a discount of 2.8%–13.6% from the price in the open market. According to Moneycontrol, BofA Securities will be the deal's only bookrunner.

On the heels of the announcement, investors will be keeping an eye on Zomato and Uber stock tomorrow. According to BSE data, Zomato shares closed Tuesday 19.96% higher at Rs. 55.60. Zomato stock has lost more than 60% of its value so far this year amid a general tech sell-off.

The information comes as Zomato stock surged nearly 20% on Tuesday after the online meal delivery service announced that its consolidated net loss shrunk in the June quarter. As opposed to a loss of Rs 361 crore in Q1FY22, the food technology player reported a consolidated loss of Rs 186 crore for the quarter ended June 30, 2022. The quarter's revenue increased 68% year over year to Rs 1,414 crore.

The adjusted Ebitda loss for Zomato's fiscal quarter from April to June decreased from Rs 170 crore to Rs 150 crore. The company's market value on the BSE increased by Rs 7,283.52 billion to Rs 43,777.52 billion. The food delivery business achieved a significant milestone in terms of profitability last quarter when it reached Adjusted EBITDA break-even. Contribution as a percentage of GOV improved to 2.8% in Q1FY23 from 1.7% in Q4FY22 as a result of improvements on both the cost and revenue sides, as we had previously mentioned, according to a filing made by Zomato's CFO on the BSE on Monday.

"Now that the Zomato-Blinkit merger has been approved, Zomato, Blinkit, and Hyperpure are the three firms in order of company size/impact. Along with these three, there is Feeding India. According to Deepinder Goyal, founder, and CEO of Zomato, "We are now at a point of life where we are graduating from running (more or less) a single firm to running numerous enormous companies.

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