"Zomato Block Deal: Antfin Singapore to Sell $408M Stake"

20 Aug, 2024

"Zomato Block Deal: Antfin Singapore to Sell $408M Stake"

Antfin Singapore, a subsidiary of Ant Group, plans to sell 13.6 crore shares of Zomato, representing a 1.54% stake, through a block deal on Tuesday. The floor price for the sale is set at INR 251.68 per share, a 4% discount from Zomato’s closing price of INR 262.3 on Monday. This move follows Zomato's recent surge in share prices, reaching INR 280 earlier today after brokerage firm UBS raised its price target for the stock to INR 320 from INR 260.

Antfin currently holds a 4.3% stake in Zomato, equivalent to 37.38 crore shares as of the June 2024 quarter. This sale marks Antfin's second stake reduction in Zomato this year, following a bulk deal in March where it sold 9.7 crore shares worth INR 2,827 crore.

The decision to offload shares comes as Zomato experiences a strong bull run, driven by its improving financial performance. In Q1 FY25, Zomato reported a net profit of INR 253 crore, a significant increase from INR 2 crore in the same quarter last year. The company also posted a 74% jump in revenue from operations. Zomato plans to launch a new app, 'District,' to further boost its revenue.