Zomato block deal: Stock in focus as Antfin may sell Rs 3,420 crore shares today 

Shares of Zomato Ltd are in focus on Tuesday morning, as China's Antfin Singapore Holdings is reportedly looking to offload 1.54 per cent stake in Zomato Ltd via block deal today. The floor price is said to be set at Rs 251.68 apiece, valuing the deal size at Rs 3,420 crore or $408 million, multiple reports suggested. The block deals would be at 4.39 per cent discount to Monday's closing price of Rs 263.24 on NSE.

Global investment banks Goldman Sachs and Morgan Stanley are said to be managing the share sale. Business Today could not independently verify the report.

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.

Elara Securities in a recent note said the US-based food ordering & delivery platform DoorDash reported 23 per cent YoY revenue growth in Q2CY24, whereas Zomato's food delivery posted adjusted revenue growth of 30 per cent YoY in Q1FY25, much higher than DASH.

DASH reported lower gross order value (GOV) growth at 20 per cent YoY against Zomato's 27 per cent YoY.

"Growing ad revenue is a key lever adopted by both DASH and ZOMATO to drive overall revenue/margin growth, as the take rates for DASH and Zomato grew by 34bp YoY and 226bp YoY to 13.3 per cent and 21 per cent; respectively. DASH and Zomato's strategy are aligned on strategic initiatives, such as 1) to drive higher ad revenue, 2) higher frequency, 3) superior user experience, and 4) expansion towards non-food (grocery & others), which, in turn, would continue to drive healthy double-digit growth coupled with improved profitability," Elara noted.