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Zomato: Alibaba Group raises Rs 1,631 crore via 3% stake sale in Zomato

by WOOWinvest
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Zomato: Alibaba Group raises Rs 1,631 crore via 3% stake sale in Zomato

China’s Alibaba Group sold a 3.1% stake in Zomato through the open market on Wednesday and raised Rs 1,631 crore.

The Chinese conglomerate sold 26,28,73,507 shares at Rs 62.06, a discount of over 2% to Tuesday’s close price of Rs 63.55, according to bulk deals data on the National Stock Exchange.

This is the first sale by an existing shareholder of

in over three months. In August, venture capital fund Sequoia Capital had sold 2% stake, which followed the sale of the entire 7.8% stake by Uber and a 2.3% stake sale by Tiger Global Management.

Through a separate deal, Singapore-based investment fund Temasek Holdings has bought 1.1% stake worth Rs 608 crore in Zomato. Temasek, a company owned by the Government of Singapore, bought 9,80,00,000 shares of the online food delivery aggregator at Rs 62 apiece, a discount of 2.4% to Tuesday’s close price.

Temasek owns and manages a net portfolio of S$403 billion globally as of 2022. Buying by Temasek offered support to the stock and helped Zomato end 2.7% higher at Rs 65.25 on the NSE. However, the stock has fallen more than 52% so far in 2022.

Despite the sale of stake by some of the big investors, the company remains the preferred one among the listed new-age technology companies given the strong growth prospects for consumption in India.

Moreover, Zomato’s financials have improved significantly with the company posting its first-ever standalone profit in the September quarter.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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