Zomato Block Deal: Axis Mutual Fund, Morgan Stanley and SBI Life Insurance were the buyers

On August 28, a block deal occurred in the shares of Zomato Limited. Apoletto Asia, a venture capital firm based in Moscow, Russia, sold 3,19,80,447 Zomato shares at an average price of Rs 90.10 each.

The list of buyers is extensive and includes Axis Mutual Fund, Founders Collective Fund, Girik Wealth Advisors Private Limited, ICICI Prudential Life Insurance, Morgan Stanley Asia Singapore, SBI Life Insurance Company Limited, and Societe Generale.

Shares of Zomato surged by 5.6% on Monday and eventually closed the day at Rs 92.33 each on the BSE.

Today, the shares opened at Rs 92.61, almost flat compared to the previous day’s closing price of Rs 92.33. While writing this article, they are trading at Rs 92.94, which is 0.66% higher than the previous closing price.

The quantities of Zomato shares these companies have purchased during this block deal are as follows:

On August 7, the shares of the company reached a significant milestone of Rs 100 from an all-time low of Rs 40.60 apiece. If we calculate the return the stock has generated from the all-time low price, it has yielded a return of 128% within a year.

In the June quarter of FY24, the company’s revenue from operations experienced an increase of 71% YoY, going from Rs 1414 crore to Rs 2416 crore. The operating loss of the company narrowed from Rs 307 crore to Rs 48 crore, and on a sequential basis, it decreased significantly from Rs 226 crore to Rs 48 crore.

Meanwhile, the net profit of the company amounts to Rs 2 crore, against a loss of Rs 188 crore in the last March quarter of FY23.

The book value of the company is Rs 22.8, which means the stock is trading at a price-to-book value of 4 times in the market.

Zomato Limited operates as an Internet portal that facilitates connections between users, restaurant partners, and delivery partners. The company also provides a platform for restaurant partners to advertise themselves to the target audience in India and abroad, as well as for the supply of ingredients to restaurant partners.

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.