Block deal: Zomato shares drop 2% amid high turnover; Antfin likely seller

Shares of Zomato Ltd fell about 1 per cent in Tuesday's trade amid high turnover, as China's Antfin Singapore Holdings likely sold 1.54 per cent stake in the ongoing food delivery platform via block deals. The Zomato stock declined 1.98 per cent to hit a low of Rs 257.10 on BSE, with the counter logging volumes of 19.86 crore shares -- 44.5 times the two-week average quantity; and turnover of Rs 5,115.21 crore.

As per reports, public investor Antfin Singapore Holdings was looking to offload shares at a floor price of Rs 251.68 apiece, valuing the deal size at Rs 3,420 crore or $408 million, multiple reports suggested. A CNBC TV 18 report suggested the Zomato counter saw large deals at Rs 258 per share.

Global investment banks Goldman Sachs and Morgan Stanley are said to be managing the share sale. Business Today could not independently verify the report. Zomato shares are up 109 per cent in 2024 so far and 190 per cent in the past one year.

Data available with stock exchanges showed Antfin Singapore Holding Pte held 37,38,55,225 shares or 4.30 per cent stake in Zomato at the end of June quarter. Antfin Singapore Holdings had in March this year sold 2.1 per cent Zomato stake in block deals at about Rs 160 apiece each worth $341.50 million. It held 6.42 per cent stake in Zomato at the end of December 2023 quarter.

In November 2023, China's Alipay exited Zomato, offloading its entire 3.44 per cent stake in the Indian food delivery platform.

Zomato shares hit a record high of Rs 280 on Monday. Foreign brokerage UBS has maintained its 'Buy' call on Zomato with an increased target price of Rs 320 against Rs 260 earlier. Last week, Morgan Stanley had maintained 'Overweight' on Zomato with a target price of Rs 278.