Zomato shares drop as stake matching Uber’s put up for sale

Zomato fell 9.5% shortly after opening on Wednesday in Mumbai, down 1.6% at 54.65 rupees at 9:55 local time.

Bloomberg | | Posted by Yagya Sharma

Shares of India’s Zomato Ltd declined as undisclosed shareholders offered to sell 612 million shares at a discount, matching the stake held by Uber Technologies.

Zomato fell 9.5% shortly after opening on Wednesday in Mumbai, down 1.6% at 54.65 rupees at 9:55 local time.

According to the terms of the deal seen by Bloomberg News late on Tuesday, shareholders sold in block trading offered the stock between 48 rupees and 54 rupees. The discount is widened by 13.6% compared to the last closing price. BofA Securities is the sole book runner of the block trade.

Also Read | Shares of Zomato fell to a record low after the mandatory lock-in period ended

Indian daily Business Standard reported on Tuesday that Uber is the issuing holder of the shares. According to data compiled by Bloomberg, Uber owns 612.2 million shares in Zomato.

Zomato raised $1.3 billion with its offering nearly a year ago, allowing Indian startups to tap investors through a first-ever share sale in the South Asian country. Shares of the Indian online food-delivery platform fell last week after the expiration of a lock-up period for investors in the company ahead of the offering.

Pre-IPO investors in the New Delhi-based company include China’s Ant Group Co., InfoEdge India, Uber Technologies Inc. and Sequoia Capital.

Shares of Zomato jumped 20% on Tuesday, following the debut session last year, when a number of block transactions changed hands after the release of its quarterly performance report. The result showed lower-than-expected losses and revenues in line with analysts’ expectations.

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