SoftBank looking to sell Zomato shares via block deals: Report
SoftBank received a 3.35% stake in Zomato as part of the merger deal with Blinkit. The shares will be unlocked for trading on Monday, August 28.
Zomato through block deals as the 12-month lock-in period for investors post the Blinkit deal ends today, as per CNBC-TV18.is reportedly looking to sell its shares in
The Masayoshi Son-led investment firm received a 3.35% stake in invested in Blinkit. The Japanese investor received Zomato shares at an implied value of Rs 70.76 per share.as part of the merger deal as the VC firm had earlier
As part of the agreement, SoftBank, Sequoia Capital, and Tiger Global were subject to a mandatory lock-in period.
The shares received after the deal will be unlocked for trading on Monday, August 28.
At the time of publishing this article, Zomato was trading at Rs 91.70 per share. While this is a 2.10% decline from the previous day, the shares are valued at 29.70% higher than when SoftBank received the shares, resulting in significant profits if the Japanese investor sells.
Zomato's unexpected Rs 2 crore profit in the June quarter, surpassing its earlier projections, brought a welcome dose of optimism to both its investors and the stock market, YourStory reported.
Operating revenue jumped 71% to Rs 2,416 crore from Rs 1,414 crore last year, aided by substantial growth in Hyperpure, the company's restaurant supplies vertical.
"Realistically speaking, we were expecting to hit this milestone in the September quarter (Q2 FY24), and we were being conservative in our earlier guidance. However, some critical parts of the team across our businesses out-executed our expectations/plans, and some of our initiatives delivered better outcomes than we had expected,” said Akshant Goyal, Chief Financial Officer of Zomato, in a shareholder's statement.
According to the CFO, the company is set to sustain profitability in the foreseeable future, with a projected year-on-year adjusted revenue growth of over 40% for at least the next few years.
Edited by Kanishk Singh