Zomato’s share price continued to make gains for the third straight session on Wednesday.
What Happened: The surge today comes even as SoftBank Vision Fund (SVF Global) is likely to sell a 1.17% stake it holds in food delivery giant Zomato for ₹940 crore via a block deal. The average price for the deal is reported to be around ₹94. The price is around a 0.7% discount from the stock’s last closing price of ₹94.65.
The sale comes days after Tiger Global sold its entire stake in the company for over ₹1,100 crore. The deals come after the expiration of Zomato’s Blinkit acquisition lock-in period on August 25. Both SoftBank and Tiger Global were subject to the lock-in along with Peak XV Partners (formerly Sequoia India).
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Despite the exits, Zomato’s share price has continued its dream run at the bourses. Brokerages have also remained strongly bullish on the stock. HSBC maintained its ‘buy’ rating on the stock raising the price target to ₹120 from ₹102. The stock seems to be gaining strength from the target price upgrade.
The firm said that Blinkit can achieve a 3-4% EBITDA margin in the coming three-four years. The firm added that Hyperlocal can be a much bigger business for the food delivery giant in the long term.
Price Action: Zomato’s share price was 3.38% to trade at ₹97.90 at market open on Wednesday.
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