Tiger Global joins Zomato sellers; sheds 2.34% stake in food delivery company
Zomato which concluded its IPO at an issue price of ₹76 apiece in July last year, went on to hit an all-time high of ₹169 per share in November. On Thursday, the stock closed at ₹57.75. Last month, it hit a low of ₹40.55
MUMBAI: Technology investor Tiger Global has sold over 184 million shares of food delivery services firm, Zomato Ltd, representing 2.34% stake of the company, over the last few trading sessions, the investor said in a stock exchange filing.
Tiger Global said that it sold Zomato shares between 25 July and 2 August in the open market. After the sale, Tiger Global now holds a 2.77% stake in the company, the filing shows.
While the filing did not disclose the sale proceeds, based on the average closing stock price of ₹46.8 apiece of Zomato between 25 July and 2 August, Tiger Global is likely to have sold shares worth ₹863.2 crore or approximately $109 million.
With this sale, Tiger Global joins other shareholders such as Uber and Moore Strategic Ventures who have sold shares of Zomato in the past few days, since the 12 month lock-in period for pre-IPO shareholders ended on 23 July.
On 3 August, American ride sharing firm Uber, the second biggest shareholder of Zomato, sold its entire 7.78% stake in the company through block deals for a sum of ₹3,087.9 crore. Uber sold its shares at an average price of ₹50.44 to Fidelity and ICICI Prudential Life Insurance Co Ltd.
On 26 July, Moore Strategic Ventures Llp sold its entire Zomato stake for ₹187.1 crore, at ₹44 apiece.
Investors who have sold Zomato shares post the end of the 12 month lock-in have taken a hit on the potential profits that they could have generated from Zomato stock, given the price correction that the company has seen in recent months as a result of risk-off investor sentiment for technology stocks globally.
Zomato which concluded its IPO at an issue price of ₹76 apiece in July last year, went on to hit an all-time high of ₹169 per share in November. On Thursday, the stock closed at ₹57.75. Last month, it hit a low of ₹40.55.
While Moore Strategic Ventures sold its shares at a loss of Rs4 crore, according to an analysis by Moneycontrol.com, Uber sold its entire stake at a profit.
As per Mint’s analysis from Zomato’s IPO prospectus, shares were allotted to Uber at a price of Rs22.47 apiece.
In the case of Tiger Global, shares were allotted to the investor at two different price points of ₹44.81 and ₹58.20 at the end of 2020 and early 2021, as per Zomato’s IPO prospectus.
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