Zomato Ltd., India’s leading food delivery platform, witnessed a significant dip in its share price on Wednesday, triggered by a substantial block trade involving a major shareholder. The company’s stock plunged over 2% during the morning trading session, reflecting investor sentiment in response to the sizable transaction.
The block deal saw approximately 19 crore shares, equivalent to 2.2% of Zomato’s equity, change hands. The total value of the transaction amounted to a staggering Rs 3,112 crore, with an average share price of Rs 160.
Reports citing unnamed sources indicate that AntFin Singapore, a prominent investor in Zomato, was the likely seller in the block deal. The transaction involved AntFin offloading a 2% stake, valued at approximately Rs 2,800 crore. Notably, following this divestment, AntFin will be subject to a lock-in period of 90 days, during which they cannot further sell their holdings in the company.
Zomato’s share price reacted swiftly to the news, declining by 2.4% to Rs 161.80 during the morning trading session. As of 9:20 AM, the company’s shares were trading at Rs 161.35 on the National Stock Exchange (NSE), reflecting a 2.5% decrease.
Despite the recent dip, Zomato’s stock has been a remarkable performer over the past year, delivering multibagger returns of nearly 200% to investors. The company’s strong growth trajectory and dominance in the rapidly expanding online food delivery market have fueled investor confidence, making it one of the most closely watched stocks in the technology sector.
