SUMMARY
Tiger Global’s Internet Fund III Pte Ltd sold 1.44% stake in the foodtech company at an average price of INR 91.01 per share
Societe Generale, Kotak and Axis Mutual funds, Morgan Stanley Asia Singapore, BNP Paribas Arbitrage picked up the offloaded Zomato shares
The share sale followed the end of the lock-in period for Blinkit investors who received shares of Zomato following the acquisition of the quick commerce player by the latter last year
Investment firm Tiger Global exited foodtech giant Zomato by selling 12.24 Cr shares, amounting to 1.44% stake, on Monday via open market transactions.
The firm’s Internet Fund III Pte Ltd sold the shares in multiple tranches at an average price of INR 91.01 Cr, as per the bulk deal data of the BSE. In total, Tiger Global sold the shares for INR 1,123.84 Cr.
French banking major Societe Generale lapped up a majority of the dumped shares (3.84 Cr). Kotak’s midcap fund, Axis Mutual Fund and Morgan Stanley Asia Singapore, BNP Paribas Arbitrage were the other buyers of the offloaded shares.
Tiger Global’s Internet Fund III held a 1.44% stake in Zomato at the end of June 2023, as per the foodtech major’s shareholding data available with the exchanges.
Meanwhile, shares of Zomato were unaffected by the bulk selling, ending Monday’s session 1.53% higher at INR 92.33 on the BSE.
The share sale by Tiger Global came following the end of the lock-in period for Blinkit investors who received shares of Zomato after the acquisition of the quick commerce player by the latter last year. Apart from Tiger Global, global investors such as SoftBank and Peak XV (formerly Sequoia India) were bound by the lock-in period.
As per a report, SoftBank is also looking to offload Zomato shares following the end of the lock-in period.
Zomato has seen a sort of financial reversal in the past few quarters. It posted a consolidated profit after tax (PAT) of INR 2 Cr in the first quarter (Q1) of financial year 2023-24 (FY24) as against a net loss of INR 186 Cr during the same period last year.
In addition, the company has also introduced a host of measures to spruce up its bottomline. Last week, Inc42 reported that Zomato has hiked the platform fee to INR 3 per order in some Tier II cities from INR 2 per order.
The positive financial numbers have also resulted in a sharp rise in the company’s share price from the lows of 2022. Zomato’s shares are up 55.73% year to date.
