Softbank likely to sell 1.1% stake in Zomato worth ₹1,125 crore | Mint
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Business News/ Companies / News/  Softbank likely to sell 1.1% stake in Zomato worth 1,125 crore
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Softbank likely to sell 1.1% stake in Zomato worth ₹1,125 crore

The transaction is set to take place at ₹120.5 per unit, representing a slight discount compared to the current market levels.

Softbank's SVF growth seeks to sell 1.1% stake in Zomato (REUTERS)Premium
Softbank's SVF growth seeks to sell 1.1% stake in Zomato (REUTERS)

SoftBank, the Japanese conglomerate, is looking to divest a stake valued at 1,125.5 million in the food delivery company Zomato through a block deal, according to a report by CNBC-TV18.

The transaction is set to take place at 120.5 per unit, representing a slight discount compared to the current market levels.

SoftBank has been progressively reducing its holdings in Zomato following the conclusion of the lock-in period associated with the Blinkit deal in August. At the close of June, the Japanese investor, represented by its affiliate, possessed a 3.35% stake, which subsequently diminished to 2.17% by September.

However, it was not immediately clear who will be the buyers in this transaction.

In October, SoftBank divested a 1.09 percent equity stake in Zomato through its affiliate, SVF Growth Singapore Pte, in a substantial transaction valued at 1,040.5 crore. This move followed a previous 1.17 percent stake sale in Zomato in August.

According to the most recent data provided by Zomato as of the end of September, SoftBank retained a 2.17 percent ownership stake in the food delivery services provider.

SoftBank has been divesting its holdings in emerging Indian companies over the past few months, including a substantial stake in Paytm. In the current year, Zomato's stock has surged by an impressive 102 percent, yet it remains a considerable distance from its all-time high of 169.

Zomato issued new equity shares to the selling stakeholders of Blinkit as part of the merger and acquisition deal finalized last year. Subsequent to the transaction, Zomato successfully negotiated a 12-month lock-in period for these shares, surpassing the standard statutory lock-in duration of six months.

In addition to Zomato, Softbank has been divesting from other ventures too. In November, the company divested approximately 1.8 crore shares in Delhivery. Furthermore, in October, Softbank relinquished a 2.5% stake in PB Fintech. Prior to that, the investor also divested its stake in Paytm a few months earlier.

Zomato stock closed at 122 per share, up by 2.61% on Thursday's trading session, against previous close at 118.9 on Wednesday.

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Published: 07 Dec 2023, 06:05 PM IST
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