Connect with us

News

Zomato Shares Fall Over 6 Percent After It Announces Blinkit Acquisition

Published

on

Zomato

Highlights:

  • Zomato dips 6% as board approves acquisition of Blinkit for Rs 4,447 crore.
  • This transaction will be carried out through issuance and allotment of up to 628.5 million fully paid-up equity shares of Zomato.
  • Zomato said the acquisition is in line with the company’s strategy of investing in the quick commerce business.

Shares of food aggregator Zomato tumbled sharply on Monday after the company’s Board of Directors approved a proposal to acquire a cash-strapped quick commerce company Blinkit for ₹ 4,447 crore. The proposed acquisition will be an all-stock deal. Last year, Zomato extended $50 million loans to Grofers India Private Limited, which has now been renamed as Blink Commerce. At 12.14 p.m, the shares of Zomato traded at ₹ 65.90, down 6.5 per cent from the previous session.

In a meeting held on Friday, the board of the company gave its approval to buy up to 33,018 equity shares of Blink Commerce Pvt Ltd from its shareholders for a total purchase price of Rs 4,447.48 crore, or Rs 13.45 lakh per equity share. According to the filing, the transaction will carry out through the issuance and allotment of up to 62.85 crores fully paid-up equity shares of Zomato, with a face value of Rs 1 each, at a preferential price of Rs 70.76 per equity share.

Blinkit Acquisition Fails To Impress Zomato Investors

On the BSE, the stock of the Zomato opened 3.77 per cent higher at Rs 73 per share, however, it didn’t last, and as the trade progressed, it turned negative. It hit an intraday low of Rs 65.05 in the final hour of trading, down 7.53 per cent on the bourse. Whereas, on NSE in intraday trade, it reached a high of Rs 72.70 and a low of Rs 65, mirroring similar movements. Finally, the stock closed 6.40 per cent lower on the BSE at Rs 65.85 and 6.60 per cent lower on the NSE at Rs 65.85.

Over the past six months, though, the stock price of Zomato has tanked 49 per cent, as against a 7 per cent fall in the benchmark index. It has corrected 61 per cent from its record high of Rs 169, touched on November 16, 2021. In July last year, Zomato had raised Rs 9,375 crore through initial public offer (IPO) by issuing shares at price of Rs 76 per share. The stock had hit a record low of Rs 50.35 on May 11, 2022.

Zomato said the acquisition is in line with the company’s strategy of investing in the quick commerce business. This transaction will carry out through issuance and allotment of up to 628.5 million fully paid-up equity shares of Zomato, having face value of Rs 1 each at a price of Rs 70.76 per equity share.

Thanks for Reading!!

Also Read:

Apple likely to launch iPhone 14, AirPods Pro 2, mixed-reality headset and iPads this year

Elon Musk in trouble, Dogecoin investor files 20 lakh crore case

 

 

 

Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2020 - 2021 TechZimo.com, All rights reserved.