A big block deal is likely in food delivery platform Zomato on Wednesday as Uber is expected to sell 7.8 percent stake in the food-tech firm, as per reports.
The offer is of Rs 2,938 crore, which is based on the lower end of a Rs 48-54 share price range set for the block deal. The offer size will be equivalent to 612 million or 7.8% of the existing total outstanding shares.
BofA Securities will be the sole bookrunner for the deal.
Meanwhile, Uber has said in its earnings announcement that it had booked an unrealised gain (loss) of $707 million in the first half of 2022 on account of its Zomato holdings.
Meanwhile, Zomato shares surged nearly 20 percent on Tuesday after its loss in the June quarter almost halved.
The stock climbed 19.96 percent to settle at Rs 55.60 — its upper circuit limit — on the BSE. On the NSE, it gained 19.97 percent to close at Rs 55.55 a unit.
The company’s market valuation also climbed Rs 7,283.52 crore to Rs 43,777.52 crore on the BSE.
In traded volume terms, 803.27 lakh shares were traded at the BSE and over 52.88 crore shares at the NSE during the day.
On Monday, Zomato said its consolidated net loss in the first quarter of current fi-nancial year almost halved to Rs 186 crore due to higher income.
The company had reported a net loss of Rs 360.7 crore in the year-ago period.
During the quarter under review, total income rose to Rs 1,582 crore from Rs 916.6 crore in the corresponding period last year.
“Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth. We are doing that by assessing everything with a critical lens and allocating resources by taking a long-term view to sustainable growth, as well as profit,” said Deepinder Goyal, CEO at Zomato.
