Shares of Zomato opened lower on Tuesday amid reports of a stake sale via a block deal.

What Happened: Antfin Singapore is reportedly looking to sell 136 million shares or about a 2% stake in the food delivery firm in a block deal valued at $408 million (₹3,421 crore).

The shares will be sold at a floor price of ₹251.68 per share, which represents a 4% discount to the stock’s closing price on Monday.

At the end of the April to June quarter, Antrim held a 4.24% stake at the firm, according to the shareholding pattern data available on NSE. As of Monday's close, Antfin's stake in Zomato was worth ₹9,841 crore.

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Global investment banks Morgan Stanley and Goldman Sachs are overseeing the share sale, according to reports. Additionally, the selling shareholder will be subject to a 90-day lock-in period before they can sell any further shares.

In March, Antfin sold a 2% stake in the firm in the open market for ₹2,828 crore.

UBS maintained a "buy" recommendation for the stock and has raised its target price to ₹320. The brokerage firm said that Q1 results were unexpectedly positive for the food delivery platform, with stronger-than-anticipated growth in quick-commerce gross merchandise value (GMV) and a 27% increase in food delivery. Both metrics exceeded UBS’ estimates.

Price Action: Zomato's shares were trading 1.08% lower at ₹259.34 on Tuesday.

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