Zomato stock tumbles over 6% after Blinkit deal announcement
- The stock closed at Rs65.85, down 6.40%, on the BSE. On the NSE, the Zomato stock closed at Rs65.85, down 6.60%.
Shares of the online food delivery platform Zomato Ltd declined by over 6% on Monday after the announcement that it will acquire quick commerce company Blink Commerce Pvt Ltd (Blinkit) for Rs4,447.48 crore.
During the intra-day trade, the stock fell 7.53% to touch Rs65.05. The stock closed at Rs65.85, down 6.40%, on the BSE.
On the NSE, the Zomato stock closed at Rs65.85, down 6.60%. So far in 2022, the stock had fallen 53% on a cumulative basis.
The food aggregator on Friday had said it will acquire Blink Commerce Pvt Ltd for Rs4,447.48 crore in a share swap deal as part of its strategy of investing in quick commerce business.
The board of directors of Zomato Ltd in a meeting on Friday approved a proposal to acquire cash-strapped Blink Commerce for Rs4,447 crore. Zomato will purchase up to 33,018 equity shares of Blink Commerce from its shareholders at a price of Rs13.45 lakh per equity share.
The transaction will be carried out through issuance and allotment of up to 62.85 crore fully paid-up equity shares of Zomato having a face value of Re 1 each at a price of Rs70.76 per equity share on a preferential basis.
Zomato already holds 1 equity share and 3,248 preference shares presently in Blink Commerce.
Blink Commerce Pvt Ltd was formerly known as Grofers. Last year, Zomato extended $50 million loans to Grofers India Private Limited.
The online food delivery platform’s current market capitalisation is worth Rs52,242 crore, according to National Stock Exchange data.
On Monday, the BSE Sensex index closed at 53,161.28, up 0.82%; and the Nifty 50 index at 15,832.05, 0.85% higher.
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