Ant Group to sell stake in Zomato

Zomato: The floor price for the block value has probably been set at Rs 159.4 per share.

China’s Ant Group’s arm, Antfin Singapore Holdings Pte, is set to divest up to a 2% stake, equivalent to 17.64 crore shares, in Zomato for Rs 2,800 crore through a block deal, sources informed CNBC-Awaaz on March 5.

Block Deal Details

The floor price for the block deal has been established at Rs 159.4 per share, reflecting a 4% discount to Zomato’s current market price, as reported by the channel.

Market Performance

Zomato’s scrip on BSE concluded 1.8% lower at Rs 166.8 on Tuesday. However, the food delivery platform had experienced a record high in share prices on Monday, driven by improved profitability and positive investor sentiment regarding future growth prospects.

Financial Outlook

Blinkit, Zomato’s quick-commerce segment acquired in 2022, is anticipated to achieve EBITDA positivity in the upcoming fiscal year, presenting an additional growth avenue for investors.

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In the third quarter ended December 31, 2023, Zomato reported a consolidated net profit of Rs 138 crore, marking a significant turnaround from a net loss of Rs 347 crore in the same period last fiscal year. Consolidated revenue from operations surged to Rs 3,288 crore, compared to Rs 1,948 crore in the previous year.

CEO Statement

In a letter to shareholders, Zomato Managing Director & CEO Deepinder Goyal highlighted a 25% year-on-year growth in food delivery Gross Order Value (GOV) in the third quarter, indicating positive momentum in the core business.