Block Deal Alert: Zomato’s Share Price Falls Over 3.5% In Morning Trade

Zomato, the Indian online food delivery giant, witnessed a nearly 3.5% drop in its shares today, prompted by a block deal that occurred during the morning session.

The company’s shares recently reached their previous all-time high levels on the first day of the current month, March, and began trading at these record levels. However, they eventually closed below this peak on that day.

Block Deal

Today, Zomato shares took center stage during the morning session as 19 crore shares, valued at Rs 3,112 crore, changed hands in the block deal window. This transaction represents 2.2% of the food delivery aggregator’s total equity.

The identities of the buyers and sellers in the deal are not officially disclosed. However, on Tuesday, some sources reported that Antfin, an Alibaba unit, plans to sell up to a 2% stake in Zomato through block deals, amounting to Rs 2,800 crore. According to the December quarter shareholding pattern, Antfin Singapore Holding Pte. Ltd. held a 6.42% stake in Zomato. Another interesting piece of information one must look at is who will be the buyer, and this will be revealed once the exchange discloses the information.

As of the current holding, Foreign Institutional Investors (FIIs) possess 54.88%, Domestic Institutional Investors (DIIs) hold 15.47%, and the public holds 27.98% stakes in the company.

The floor price for the block deal was set at Rs 159.4 per share, reflecting a 4% discount compared to Tuesday’s closing price.

Share Performance

Yesterday, the stock closed in the red, down by 2.33% at Rs 166.05 per share on the BSE. Today, it opened at Rs 163.45 per share and reached highs and lows of Rs 164 and Rs 160.10 per share, currently trading at around Rs 160.25 per share, reflecting a 3.49% decline from the previous day’s closing levels of Rs 166.05 per share on the BSE.

The company’s current market capitalization stands at Rs 1,40,499 crore. Over the past three months, the stocks have delivered an impressive return to their shareholders, with a growth of 33%, and over the past year, they have yielded a multibagger return of over 190%.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.