SoftBank may sell Zomato shares worth Rs. 1,125 crore
What's the story
SoftBank plans to sell around 1.1% of its stake in the food delivery giant Zomato, amounting to approximately $135 million (Rs. 1,125 crore) through a block deal, as per Bloomberg.
The shares will be sold at a price of Rs 120.50 per share.
SoftBank has been gradually reducing its stake in Zomato since the lock-in period for the Blinkit deal ended in August.
By September, SoftBank's stake in Zomato had dropped to 2.17%, down from 3.35% in June.
Details
Goldman Sachs, Morgan Stanley have bought Zomato shares
Other big investors like Citigroup, Axis MF, Bandhan MF, ADIA, Fidelity, Goldman Sachs, Morgan Stanley, and Motilal Oswal have bought the shares sold by SoftBank recently.
Last year, Zomato issued new equity shares to Blinkit's selling shareholders as part of the M&A deal, with a 12-month lock-in period instead of the usual six months.
What Next?
SoftBank's exits from other Indian companies
SoftBank has also been seen exiting other Indian new-age companies, such as Delhivery, PB Fintech, and Paytm.
The majority of Zomato's shares are held by three venture capital firms: SoftBank, Sequoia, and Tiger Global.
Despite concerns over high valuations of some recently listed Indian start-ups, Zomato's stock has surged 102% this year.
Zomato's shares settled on Thursday at Rs. 121.80 apiece on BSE, up 2.44% from the previous close.