Motilal Oswal MF Dumps 2.8 Cr Zomato Shares; Societe Generale, Goldman Sachs, Others Buy

Amid a sharp surge in its stock price, foodtech major Zomato saw major share offloading by Motilal Oswal Mutual Fund on Tuesday (July 16). The domestic mutual fund sold 2.8 Cr shares of the company in a block deal worth INR 645.8 Cr.

The shares sold by the mutual fund were lapped up by several institutional investors.

At 1.3 Cr, Societe Generale bought the highest number of shares for INR 289.7 Cr, while Polar Capital Global Technology Fund bought 63.5 Lakh shares worth INR 144 Cr.

Axis Mutual Fund bought 44 Lakh shares of Zomato worth INR 99.8 Cr. Citigroup Global Markets Mauritius Private Limited bought almost 14 Lakh shares of the startup worth INR 31.7 Cr.

Goldman Sachs and Matthews Asia were among the other buyers.

It is pertinent to note that Zomato shares touched several record highs over the past few trading sessions. On Monday, the stock touched a new all-time high at INR 232 on the BSE. With that, the value of Zomato CEO and founder Deepinder Goyal’s shareholding in the company touched the $1 Bn mark. 

During Tuesday’s trading session, Zomato fell over 5% to INR 217.45 on the BSE amid the block deal. 

Zomato has been witnessing a significant uptrend since the beginning of this year, helped by its improving fundamentals and profitability. The company turned profitable in Q1 FY24, and posted an increase in profit in every quarter after that. The startup reported a net profit of INR 175 Cr in the last reported quarter, Q4 FY24. 

Kotak Institutional Equities expects Zomato to report healthy Q1 FY25 results, driven by 23% year-on-year (YoY) growth in food delivery gross merchandise value (GMV) and 113% YoY growth in Blinkit GMV. 

JM Financial also said in a recent research note that it expects Zomato to post sequentially “very strong quarter” in Q1 FY25 for food delivery as well as quick commerce businesses.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.