SUMMARY
SoftBank’s affiliate SVF Growth Singapore plans to sell 10 Cr shares of Zomato at a minimum price of INR 94 per share
On August 28, Tiger Global sold its entire 1.44% stake in Zomato for INR 1,123 Cr
Since starting operations from Mumbai in late 2018, SoftBank has realised $5.5 Bn in exits from its India portfolio, with $1.5 Bn coming from exits in the past 12 to 18 months
Japanese tech investor SoftBank is set to offload a 1.17% stake in Indian foodtech giant Zomato for at least INR 940 Cr.
As per the deal terms, the investment firm’s affiliate SVF Growth Singapore plans to offload 10 Cr Zomato shares at a floor price of INR 94 per share, according to a CNBC report. This price represents a discount of nearly 0.7% compared to Zomato’s stock closing price on August 29.
As per the report, Kotak Securities will be the sole book runner for the deal. This comes days after reports said that the tech investor was looking to offload more shares of the foodtech major via block deals.
The development follows the expiration of the lock-in period for Blinkit investors, who received Zomato shares following the acquisition of the quick commerce player by the latter, on August 25. SoftBank, which was an investor in Blinkit, received a stake of 3.35% in Zomato post the acquisition last year.
Even at the floor price of INR 94, SoftBank will still be able to book hefty profits as the implied value of the Zomato shares that it received following the Blinkit deal stood at INR 70.76 per share.
This is the second major Zomato investor selling a stake in the foodtech giant. Just yesterday, US-based hedge fund Tiger Global exited Zomato by selling 1.44% stake via open market transactions for INR 1,123 Cr.
The Japanese tech investor has realised exits to the tune of $5.5 Bn from its India portfolio since starting operations from Mumbai in late 2018. Of this, $1.5 Bn has been made through exits in the past 12 to 18 months.
The latest development comes amidst a wave of share sales by major global investment firms in new-age tech startups following a rise in their stock prices this year on change in investor sentiments.
Prior to this, Chinese tech investor Tencent sold 2.1% of its stake in PB Fintech, the parent of Policybazaar and Paisabazaar, for INR 562 Cr ($68 Mn). Chinese internet major Ant Group also dumped 3.6% stake in fintech giant Paytm for INR 2,037 Cr through multiple block deals earlier this month.
Meanwhile, Zomato shares have been witnessing an uptick on the bourses on its improving financial numbers. The foodtech major reported a net profit of INR 2 Cr in the June quarter of 2023. On a year-to-date (YTD) basis, Zomato shares have zoomed 59.70%.
Shares of Zomato ended 2.51% higher at INR 94.65 on the BSE on Tuesday (August 29).
