Shares of online food delivery company Zomato crashed 9.6 percent on BSE in early trading Wednesday after reports emerged that Uber Technologies, a major stakeholder, plans to offload its entire holdings in the company for at least $373 million (Rs. crore) through a block transaction of shares.
Zomato fell 9.62 per cent to Rs 50.25 per piece in early BSE trading. However, on the National Stock Exchange (NSE), 6.84 per cent collapsed to Rs 51.75 per share.
At 10:49 am, Zomato shares were trading at 54.55 rupees per share on the Bahrain Stock Exchange, down 1.89 percent from its previous close. On NSE, it was priced at 54.55 rupees, down 1.80 per cent.
The data released by the respective exchanges showed that over Rs 28.51 crore shares traded on the New York Stock Exchange so far while over 68.05 crore shares were traded on the BSE. BSE data showed that the market capitalization of the company was at Rs 43,024.83 crore.
Tuesday, news agency PTI It reported that ride-hailing app Uber will sell its entire stake in staple Indian food delivery for at least $373 million (Rs 2,939 crore) through a large equity deal.
The report, citing commercial banking sources, said the offer price range for the deal to be executed on Wednesday would be between Rs 48-54 per share. The development came on a day when Zomato saw a rise of nearly 20 per cent to settle at Rs 55.60 per piece on BSE.
Uber currently owns a 7.8 percent stake in Zomato. had a Acquired a 10 percent stake in the food delivery company after the latter acquired local food delivery company Uber Eats in an all-share deal in 2020.
Zomato was listed on exchanges last year and has seen continued selling pressure over the past few months until news of losses being cut in half and business reorganization fueled by buyers’ interest in Tuesday’s trading.