Zomato Shares Fall as Antfin Sells ₹1,441 Crore Stake in Block Deal Shares of Zomato Ltd. fell nearly 3% after Antfin Singapore Holdings Pte., an affiliate of China's A...
Shares of Zomato Ltd. fell nearly 3% after Antfin Singapore Holdings Pte., an affiliate of China's Ant Group, sold a significant stake in the food delivery company through a block deal. The transaction saw 17.64 crore shares, equivalent to a 2% stake, change hands for approximately ₹1,441 crore.
The deal was executed at a price of ₹81.7 per share, contributing to the stock’s drop to ₹83.15 on the BSE during the trading session. This sale marks another significant exit by a major pre-IPO investor, putting pressure on the company's stock performance.
Antfin's divestment is part of a broader trend of early investors reducing their holdings in Zomato. This follows the expiration of lock-in periods for shares issued during Zomato’s acquisition of Blinkit (formerly Grofers). In August, Antfin had already sold a 2% stake in the company for ₹1,610 crore.
Other prominent investors have also been trimming their positions. Tiger Global Management completely exited its stake for ₹1,124 crore in late August, while SoftBank’s Vision Fund sold a 1.17% stake for ₹947 crore around the same time.
The persistent selling pressure from early backers contrasts with Zomato’s improving financial health. The company recently achieved a major milestone by reporting its first-ever quarterly profit of ₹2 crore for the first quarter of fiscal year 2024. Revenue from operations also surged by a robust 71% year-over-year to ₹2,416 crore, with adjusted EBITDA remaining positive for the second consecutive quarter.
The market remains divided on Zomato's future trajectory. While the operational turnaround has prompted some analysts to issue “buy” ratings with price targets as high as ₹120, others remain cautious. Citing valuation concerns and the ongoing stake sales, some have maintained “reduce” ratings with targets around ₹76, highlighting the uncertainty surrounding the stock.
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