Zomato shares reverse losses, trade 1% higher ahead of Q3 results; 5 recent updates you need to know

The company's shares, after giving humongous returns, have, of late, taken a breather. The stock is down nearly 12% in the past 30 days.

However, in the past 12 months, the share price of the company has zoomed over 91%.

In the morning trade on Monday, the stock price was trading over 1% higher at ₹251.40 on the NSE. Earlier, shares slipped over 1%.

"The company’s board consented to the issuance of 2,537 equity shares at an issue price of ₹19,70,181 each, amounting to a total of nearly ₹500 crore, the filings showed. This brings Zomato’s total investment in its quick commerce arm to roughly ₹2,800 crore," as per news reports.

Zomato CEO Deepinder Goyal had earlier shared that the proposed fundraise is meant to strengthen its balance sheet.

In a regulatory filing, the company informed that the Fund Raising Committee of its Board approved the allotment of 33,64,73,755 (33.65 crore) shares to eligible qualified institutional buyers at an issue price of ₹252.62 apiece, aggregating to ₹8,500 crore.

These shares were allotted to investors at a 5% discount from the floor price, which was fixed at ₹265.91 per share.

The stock replaced JSW Steel.

The inclusion in the benchmark index, as per the estimates by brokerage firm Nuvama, was calculated to drive inflows worth $513 million (₹4,362.35 crore) into Zomato and outflows worth $252 million (₹2,142.91 crore) from JSW Steel.

The board of the company, which had posted a consolidated net profit of ₹36 crore in the same quarter last fiscal.

Consolidated revenue from operations stood at ₹4,799 crore. It was at ₹2,848 crore in the year-ago period, it added. Total expenses were at ₹4,783 crore in the quarter under review against ₹3,039 crore in the corresponding period a year ago, it said.

Zomato said its results for the quarter and half-year ended September 30, 2024, were not comparable with other quarters and half-year results due to the acquisition of Orbgen Technologies Private Ltd (OTPL') and Wasteland Entertainment (WEPL), holding the 'movies ticketing' business and events business, respectively, from One 97 Communications Ltd (Paytm) in August this year.

The startup with the Continue.com domain aims to become the "Ultimate Health Tracker”. The domain is owned by a company listed under the name of Upslope Advisors Pvt LtLtd,ncorporated in April this year.

According to the company’s filings with the Ministry of Corporate Affairs (MCA), Deepinder Goyal is listed as a Director, and two other Zomato employees, Akriti Mehta and Simrandeep Singh, are listed as Additional Directors. Ashish Goel, former Zomato and Blinkit head of product design, will also be a part of the new venture, but his exact role isn’t specified, according to the MCA filings.