Kadensa Offloads Stake In Zomato Worth INR 120 Cr

Hong Kong-based asset management company Kadensa Capital offloaded more than 60 Lakh shares of foodtech giant Zomato in an INR 119.84 Cr block deal. 

As per BSE data, Kadensa Master Fund sold the stake at INR 199.5 apiece yesterday. The shares that flooded the market were lapped up by Goldman Sachs (Singapore) Pte-ODI for INR 119.84 Cr. 

The development comes days after BofA Securities downgraded Zomato amid concerns over slower than expected growth in the food delivery space and the increasing competitive pressure in the quick commerce arena. The brokerage downgraded Zomato’s shares to ‘Neutral’ from ‘Buy’ and trimmed the target price to INR 250 per share from INR 300 earlier. 

Earlier this week, Macquarie also raised “caution” over the shares of both Zomato and rival Swiggy, saying that QSR chains like Devyani International and Westlife Foodworld are better positioned compared to the foodtech giants. 

As a result, shares of Zomato were under selling pressure this entire week. The stock fell 12% in the past five trading sessions. On a year-to-date (YTD) basis, the stock has declined 27.5%. 

The Deepinder Goyal-led company saw its net profit tank more than 57% to INR 59 Cr in Q3 FY25 from INR 138 Cr in the year-ago quarter, largely due to higher cash burn on account of quick commerce expansion spree. However, operating revenue zoomed over 64% to INR 5,405 Cr during the quarter under review from INR 3,288 Cr in Q3 FY24. 

Last week, the corporate affairs ministry approved the change in the name of the company to Eternal Limited, effective March 20, 2025. Earlier this week, Zomato also joined the benchmark Nifty 50 index, as part of the Nifty Indices semi-annual rejig. 

Shares of Zomato ended today’s trading session 2.07% lower at INR 201.50 on the BSE.