Block deal: Zomato shares fall 1.5% after block deal worth ₹5,438 crore, Antfin Singapore likely seller

Shares of Zomato Ltd traded marginally lower by over 1% on Tuesday, August 20, on the NSE after a block deal was executed on the counter.

Shares of Zomato worth ₹5,438.5 crore were sold in a block deal on August 20. According to reports, Antfin Singapore Holding, a subsidiary of the Alibaba Group, was the likely seller in the block deal.

As many as 21 crore shares, representing nearly 2.4% of the company's stake, changed hands in the block deal. The floor price for the block deal was set at ₹258 apiece, a discount of 1.59% over the stock's previous closing price of ₹262.17 apiece.

The parties involved in the transaction could not be ascertained immediately. However, a report by CNBC-TV18 suggested that Antfin Singapore Holding was likely to offload a 2% stake in Zomato, valued at $556 million or ₹4,650 crore. The selling shareholder will also have a lock-in period of 90 days for further sale of shares. Morgan Stanley and Goldman Sachs were the placement agents for the block deal, according to reports.

Reports also suggested that at the end of Q1FY25, Antfin Singapore Holding Pte. Ltd. held a 4.24% stake in the company.

Earlier on August 1, Zomato announced its earnings for the quarter ended June 2024 (Q1FY25). The company’s consolidated revenue from operations increased over 74% to ₹4,206 crore in Q1FY25 compared to ₹2,416 crore in Q1FY24. In Q1FY25 the company’s consolidated profit-after-tax grew 12,550% to ₹253 crore against ₹2 crore in Q1FY24.

Shares of Zomato have surged over 187% in the past one year and have given Year-To-Date (YTD) returns of more than 108%. In six months the stock has traded higher by nearly 63%. In a month, the stock has gained over 19%.

Zomato shares are trading at ₹259.8 apiece, down by 0.87% on the NSE at 9:50 am.