SoftBank To Offload More Stake In Zomato As Blinkit Shares Lock-In Ends

SoftBank is looking to sell more shares of foodtech major Zomato through block deals, as the lock-in period for investors post the Blinkit deal ends on Friday (August 25), reports suggest.

Following the end of the lock-in period, Zomato shares received during the Blinkit deal will unlock for trading on Monday (August 28), CNBC-TV18 reported citing sources.

SoftBank, which was also an investor in Blinkit, received Zomato shares after the company acquired the quick-commerce player in August last year. The shares were subject to a 12-month lock-in. That deal gave SoftBank a 3.35% stake in Zomato.

Amid the buzz around SoftBank offloading more stake in Zomato, the shares of the startup fell as much as 3.5% to INR 90.46 during the intraday trading today on the BSE.

By 2 PM IST, Zomato shares were trading at INR 90.72, down 3.3%.

SoftBank is expected to book profit by offloading shares of Zomato, as the implied value of the shares that it received following the Blinkit deal was INR 70.76 per share. 

SoftBank has been aggressively looking to book profit and offload its shares in Indian companies, including Paytm, Zomato, and Delhivery.

While the Japanese investment major sold some stake in Paytm in the recent past, its holding in Zomato also declined to 3.35% at the end of June 2023 from 3.36% at the end of March.

Besides SoftBank, two other VC firms, Sequoia and Tiger Global, also received Zomato shares as part of Blinkit’s acquisition by the foodtech major.

Separately, as per a report, 51 Lakh Zomato shares exchanged hands in a block deal today at a price of INR 91.8 per share. 

On the back of improvement in Zomato’s financial performance, with it attaining profitability in the June 2023 quarter, the foodtech startup’s shares have been rallying since the end of March this year. The shares are up over 50% year to date.

Zomato’s contribution to SoftBank vision fund’s loss also declined to $46 Mn at the end of June 30, 2023, from $131 Mn at the end of March 31, 2023.

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