Zomato shares up in see-saw trade after Uber's exit: 5 key takeaways

Shares of Zomato climbed on Thursday despite the broader selling pressure in domestic equity benchmarks and ride hailing major Uber Technologies selling its 7.8 per cent stake in the online food aggregator. The stock rebounded and was up 2.26 per cent, at Rs 56.65, in afternoon trade after slipping 1.62 per cent amid a volatile session. It touched an intraday high of Rs 57.45, climbing as much as 3.7 per cent in early deals. The stock finally settled 4.24 per cent higher at Rs 57.75 today. Zomato has seen some massive fluctuations since last week due to lock-in period expiry and multiple block deals.

Here are five top takeaways on Zomato:

1. Uber offloaded 61,21,99,100 shares of Zomato at Rs 50.44, worth Rs 3,087 crore. Uber had reported a net loss of $2.6 billion for second quarter of 2022, of which $1.7 billion was related to its equity investments, including its Zomato stake. Uber had picked up the stake in Zomato after the latter acquired its local food business Uber Eats, in an all-stock deal in 2020.

2. Following Uber's exit, ICICI Prudential Life Insurance and Fidelity Investment Trust picked up 4,50,00,000 and 5,44,38,744 shares, respectively, in the online food aggregator, BSE data showed. Meanwhile, Tiger Global reduced its stake in Zomato from 5.11 per cent to 2.77 per cent.

3. "Market participants welcomed the new investors. Also, they are hoping that the company soon break-even and turn profitable," said AK Prabhakar, Head of Capital, IDBI Capital.

4. In an exchange filing, Zomato CFO Akshant Goyal also mentioned that on the profitability front, the food delivery business hit "an important milestone last quarter by getting to Adjusted EBITDA break-even."

5. Zomato's revenues from operations surged 67.44 per cent at Rs 1,413.9 crore in the June quarter against Rs 844.4 crore logged in the same period last year.

Also read: Uber exits Zomato by selling entire 7.8% stake, Fidelity, ICICI Prudential buy stakes

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