An arm of Japan’s SoftBank Group, Svf Growth (Singapore) Pte Ltd, is set to sell a 1.1% stake in the popular food-delivery company Zomato Ltd on December 8, as per the terms of the block deal. The estimated transaction value stands at Rs1,127.5 crore, equivalent to $135 million, with a floor price of Rs120.5 per share, representing a slight discount of about 1.1% to Zomato’s Thursday closing price of Rs121.80 on the BSE. Notably, Zomato’s shares had observed a 2.4% gain during the day.
Svf Growth currently holds a 2.2% stake in Zomato, a position acquired in exchange for its holdings in the quick-delivery startup Grofers, which Zomato acquired and rebranded as Blinkit last year. The shares were initially subject to a 12-month lock-in period for the Japanese investor post the acquisition, and this lock-in period concluded on August 25.
In a previous move on August 30, Svf Growth had sold a 1.17% stake in Zomato in a block deal amounting to Rs940 crore. Citigroup Global Markets India Pvt Ltd is the bookrunner for the upcoming sale. Meanwhile, Tiger Global has also been shedding its stake in Zomato, a company whose share price has more than doubled this year.
On August 28, Internet Fund III Pte Ltd, the venture capital fund managed by Tiger Global Management, divested 12.35 shares, constituting a 1.44% stake, at an average price of Rs91.01 per share in a bulk deal on the BSE. In the period between July 25 and August 2, the New York-based hedge fund executed the sale of over 184 million shares, equivalent to 2.34% of Zomato stock, in the open market.
The developments in stake sales by both SoftBank’s Svf Growth and Tiger Global highlight the dynamic nature of ownership in Zomato, a company that continues to capture investor attention amid its significant growth in the food-delivery sector. The upcoming sale is expected to be closely watched as stakeholders assess the market response and potential implications for Zomato’s valuation.
