Tag: Zomato share news

  • Zomato drops in Mumbai as stake matching Uber’s put up on the market

    Shares of of India’s Zomato Ltd declined as an undisclosed shareholder provided to promote 612 million shares at a reduction, a stake matching that held by Uber Technologies.

    Zomato fell as a lot as 9.5% in Mumbai shortly after opening on Wednesday, earlier than paring the drop to 1.6% at 54.65 rupees as of 9:55 a.m. native time.

    The promoting shareholder within the block commerce provided the inventory at between 48 rupees and 54 rupees a bit, in response to phrases of the deal seen by Bloomberg News late Tuesday. The low cost versus the final closing worth was as extensive as 13.6%. BofA Securities is the only bookrunner of the block commerce.

    Indian every day Business Standard reported on Tuesday that Uber is the holder disbursing the shares. Uber owns 612.2 million shares in Zomato, in response to knowledge compiled by Bloomberg.

    Zomato raised $1.3 billion with its providing about one 12 months in the past, opening room for a slew of Indian startups that tapped traders by way of first-time share gross sales within the South Asian nation. Shares of the Indian on-line food-delivery platform plunged final week following the expiry of a lock-up interval for traders within the firm previous to the providing.

    Pre-IPO traders within the New Delhi-based firm embody China’s Ant Group Co., Info Edge India, Uber Technologies Inc. and Sequoia Capital.

    Zomato shares jumped 20% on Tuesday, essentially the most for the reason that debut session final 12 months, as quite a few block trades modified arms after it launched its quarterly efficiency report. The consequence confirmed a smaller-than-expected loss and income according to analyst expectations.

  • Zomato Share Price Today: Zomato shares tank practically 10% on BSE on Uber stake sale report

    Zomato Share Updates: Shares of on-line meals supply agency Zomato crashed 9.6 per cent on the BSE within the early commerce on Wednesday after experiences emerged that Uber Technologies, considered one of its key stakeholders, is planning to dump its whole holding within the firm for a minimum of $373 million (Rs 2,939 crore) by a block deal of shares.

    The Zomato inventory tanked 9.62 per cent to Rs 50.25 apiece within the early commerce on the BSE. However, on the National Stock Exchange (NSE), it crashed 6.84 per cent to Rs 51.75 per share.

    At 10: 49 am, the Zomato scrip was buying and selling at Rs 54.55 per share on the BSE, down 1.89 per cent from its earlier shut. On NSE, it was quoted at Rs 54.55, down 1.80 per cent.

    So far within the intraday commerce, over 28.51 crore shares have been traded on the NSE whereas over 68.05 crore shares exchanged fingers on the BSE, information from the respective bourses confirmed. The market capitalisation of the corporate was at Rs 43,024.83 crore, BSE information confirmed.

    On Tuesday, information company PTI reported that ride-hailing app Uber will likely be promoting off its whole stake within the Indian meals supply main for a minimum of $373 million (Rs 2,939 crore) by a block deal of shares.

    The provide value vary for the deal to be carried out on Wednesday will likely be between Rs 48-54 per share, the report stated citing service provider banking sources. The growth got here on a day when the Zomato inventory noticed a virtually 20 per cent rally to to settle Rs 55.60 apiece on the BSE.

    Uber holds presently holds a 7.8 per cent stake in Zomato. It had acquired a ten per cent stake within the meals supply chief after the latter acquired its native meals supply enterprise Uber Eats in an all-stock deal in 2020.

    Zomato bought listed on the inventory exchanges final 12 months and it had been witnessing fixed promoting stress for the previous few months until the information of halving of losses and enterprise reorganisation heightened consumers’ curiosity in Tuesday’s commerce.

  • Zomato shares leap practically 11% after Q1 earnings

    Shares of on-line meals supply platform Zomato on Tuesday jumped practically 11 per cent after the corporate’s consolidated internet loss within the first quarter of the present monetary 12 months nearly halved.

    The inventory climbed 10.67 per cent to Rs 51.80 on the BSE. At the NSE, it zoomed 10.79 per cent to Rs 51.30.

    Zomato on Monday mentioned its consolidated internet loss within the first quarter of the present monetary 12 months nearly halved to Rs 186 crore as a result of greater revenue.

    The firm had reported a internet lack of Rs 360.7 crore within the year-ago interval.

    During the quarter underneath assessment, the corporate’s whole revenue rose to Rs 1,582 crore towards Rs 916.6 crore within the corresponding interval of final 12 months.

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  • Zomato Share Price: Zomato inventory skids 6.6% decrease publish Blinkit acquisition announcement

    Zomato-Blinkit Acquisition News, Zomato Share Price Down: Shares of on-line meals supply and restaurant discovery platform Zomato fell 6.6 per cent on Monday following the announcement of a deal to amass fast commerce supply agency Blinkit for Rs 4,447.5 crore.

    The Zomato inventory had opened 3.77 per cent larger at Rs 73.00 apiece on the BSE nevertheless because the commerce progressed it erased all its good points and turned unfavorable. Towards the final hour of the session, it hit an intraday low of Rs 65.05, down 7.53 per cent on the bourse. Mirroring related actions on the National Stock Exchange (NSE), it hit a excessive of Rs 72.70 and a low of Rs 65.00 within the intraday commerce. Eventually, the scrip ended 6.40 per cent decrease at Rs 65.85 on the BSE and 6.60 per cent decrease at Rs 65.85 on NSE.

    On Friday post-market hours, Zomato introduced that it’s going to purchase Blink Commerce Pvt Ltd for Rs 4,447.48 crore in a share swap deal as a part of its technique of investing in fast commerce enterprise. The firm’s board at a gathering on Friday authorized the acquisition of as much as 33,018 fairness shares of Blink Commerce Pvt Ltd from its shareholders for a complete buy consideration of Rs 4,447.48 crore at a value of Rs 13.45 lakh per fairness share, it knowledgeable in an alternate submitting.

    Blink Commerce runs the short commerce service model Blinkit. It was often known as Grofers earlier.

    The transaction might be carried out by way of issuance and allotment of as much as 62.85 crore absolutely paid-up fairness shares of Zomato, having face worth of Re 1 every at a value of Rs 70.76 per fairness share on a preferential foundation, the submitting stated including that the corporate at the moment holds 1 fairness share and three,248 desire shares presently in BCPL.

    Reacting to the announcement and subsequent inventory motion, Punit Patni, Equity Research Analyst at Swastika Investmart stated, “The recently announced acquisition of Blinkit by Zomato is expected to add to its woes of high operating losses. The Blinkit is synergistic to Zomato’s food delivery business and the management expects the business to grow significantly in the future. The quick commerce market, however, has become incredibly competitive, and it will take a very long time to figure out the unit economics and turn profitable. Further, the current markets are not conducive for businesses that a growing without showing profits. Thus we believe that this company is suitable only for investors having a high-risk appetite and a long-term view.”

    Ravi Singh, Vice President and Head of Research at Share India Securities advised indianexpress.com, “Zomato share prices since its listing is struggling to survive in the market. Its high valuations and market sentiments took the toll further. The latest Zomato – Blinkit deal is also not going to make any difference in the near term as Blinkit is at an early stage and its business model is yet to be proven. The stock is trading between the range of Rs 60 – Rs 80 levels since its listing. Investors are advised to refrain from taking fresh buy positions at current levels. The stock may touch levels of Rs 90 if it breaks the levels of Rs 70, however, the possibility seems less in the current scenario.”

    JM Financial Institutional Securities in a analysis observe stated, “Zomato’s proposed acquisition of Blinkit (at an EV of USD 720mn, ~7.3% dilution for existing holders) not only widens its scope of hyperlocal delivery services beyond food delivery but also highlights management’s broader ambitions of capturing a larger slice of India’s commerce market (USD 1.3 trillion). we believe the Quick Commerce space in the long run can offer a large complimentary profit pool for players like Zomato that over the years have built significant expertise in on-demand services. Blinkit’s deal EV is at ~1.5x basis 5MCY22 annualised GMV (JMFe of ~USD 475mn), indicating ~19% discount to Zomato’s current valuation multiple of ~1.85x basis 1QCY22 annualised GMV, marginally lower than the 25% discount we had suggested in our valuations framework for Quick Commerce players in our earlier report (refer exhibit 1). Given the intense competitive intensity in the Quick Commerce space we believe that the path to profitability for Zomato group (post-acquisition) can get extended by at least a year (from FY25 to FY26). Despite management optimism, we conservatively build forecasts for Blinkit due to limited data and basis DCF, ascertain that the acquisition can add >8% value to our published target price of Rs 115 for Zomato.”

    Manoj Dalmia, Founder and Director at Proficient Equities stated that Zomato-Blinkit synergy could cut back the supply price on account of higher order density, but it surely received’t rapidly add to the margins of Zomato.

    “The major concern that remains here is the cash burn rate(annually) of Blinkit which is Rs 1290 crore and the reduction in the number of dark stores from 450 to 400, as per the management guidance it is expected that Blinkit will come to break even at Ebitda over the next three years,” he advised indianexpress.com noting that traders can monitor the earnings within the upcoming quarters after which take determination accordingly.

    “Existing investors have some hope as Zomato has a good amount of cash reserves to ensure funding for growth initiatives going further,” Dalmia stated.

    “Blinkit has reported orders of 79 lakhs in May, which is 16% of Zomato run-rate. This acquisition would therefore increase the order density of Zomato but will push the path to profitability back by up to a year which is not a good outcome in the public markets. So this deal could be a long-term win with a short-term pain if the synergies as expected fall through and Blinkit’s book stand firm,” Sonam Srivastava, smallcase supervisor advised indianexpress.com.

    “Short-term investors can be expected to leave the stock, but long-term investors can hold at these levels. We would not give a buy just yet as the clarity on Blinkit’s financial situation and synergies is yet to come,” she added.

  • Zomato share value tanks over 9% publish December quarter outcomes

    Zomato share value: Shares of on-line meals supply and restaurant discovery platform Zomato crashed over 9 per cent within the morning offers on Friday after the corporate reported narrowing of consolidated internet loss to Rs 67.2 crore for the third quarter (Q3) ended December 2021.
    The inventory crashed 9.15 per cent to Rs 85.85 apiece on the BSE through the morning commerce whereas on the National Stock Exchange (NSE) it fell 8.42 per cent to Rs 86.50 per share.
    At 10:40 am, the scrip was buying and selling at Rs 88.80 apiece, down Rs 5.70 (6.03 per cent) from its earlier shut whereas on NSE it was at Rs 88.75, down Rs 5.70 (6.03 per cent).
    Over 1.82 crore shares had been traded on NSE to this point whereas over 20.81 lakh shares exchanged arms on the BSE, information from the respective inventory exchanges confirmed.

    Zomato on Thursday reported narrowing of a consolidated internet loss to Rs 67.2 crore for Q3, on the again of higher income development. The firm, which had posted a consolidated internet lack of Rs 352.6 crore in the identical quarter final fiscal, mentioned it’s updating the higher restrict of its potential investments within the meals supply class to $400 million money over the following two years.
    Its consolidated income from operations throughout Q3 stood at Rs 1,112 crore as towards Rs 609.4 crore within the year-ago interval, the corporate mentioned in an alternate submitting.
    It additional mentioned whole bills within the third quarter had been increased at Rs 1,642.6 crore as towards Rs 755.7 crore in the identical interval final fiscal.
    During the quarter, the corporate mentioned the discount in buyer supply prices and a delicate affect of post-COVID-19 reopening, together with some shift from supply to eating out, resulted in a weak gross order worth development.
    JM Financial Research in its consequence replace mentioned, “Zomato reported lukewarm results in 3QFY22. Food delivery GOV/volumes grew a modest ~2%/5% QoQ despite substantial reduction in customer delivery charges and expansion in ~180 new cities. This was due to post-Covid reopening and retrenched marketing spends to acquire new customers. While reopen impact may continue in 4Q, we believe company’s investments and the IPL tournament starting in April could help it regain strong growth momentum.”
    It additional famous that “Zomato reported ~840bps sequential decline in EBITDA loss % on the back of operating leverage that offset subdued contribution margin. We expect these margin trends to continue in the near term.”

    “Zomato indicated that it is likely to increase its stake in Blinkit (erstwhile Grofers) following the latter’s 100% transition to the quick commerce category. We remain optimistic on such hyper local ecosystem investments (beyond core food delivery) as they could lead to bundled offerings that would not only help it improve customer engagement, retention and ordering frequency but also drive operational synergies,” the report mentioned.
    JM Financial has a “Buy” suggestion for the Zomato inventory with a goal value of Rs 155.
    -with PTI inputs

  • Bumper debut for Zomato; m-cap races previous Rs 1 lakh cr

    Food supply platform Zomato made a stellar debut on bourses on Friday, as its shares zoomed practically 53 per cent in opposition to the problem value of Rs 76, and its market valuation has crossed the Rs 1-lakh-crore mark.
    The inventory made its debut at Rs 115, reflecting an enormous achieve of 51.31 per cent in opposition to the problem value on the BSE. It then hit a excessive of Rs 138, a bounce of 81.57 per cent.
    At the NSE, it obtained listed at Rs 116, registering a premium of 52.63 per cent.
    With the rally within the shares, the corporate’s market valuation went previous the Rs 1-lakh-crore mark on the BSE.
    “Zomato, India’s main on-line meals supply firm, listed strongly on the exchanges immediately with a 53 per cent premium. Such a stellar debut on the exchanges led to its market capitalisation crossing Rs 1 lakh crore.
    “Despite the large size of IPO at Rs 9,375 crore and rich valuations, the company saw a healthy overall subscription of 38 times. There is a lot of fancy for such unique and first of its kind listing in the market. Zomato with first mover advantage is placed in a sweet spot as the online food delivery market is at the cusp of evolution,” stated Sneha Poddar, Research Analyst, Broking & Distribution, Motilal Oswal Financial Services Ltd.
    Zomato’s preliminary public providing (IPO) final week ended with a bumper 38 instances subscription.

    The IPO of Zomato was India’s greatest preliminary share sale provide since March 2020.
    The IPO had opened for subscription on July 14, in a value band of Rs 72-76 per share. It closed on July 16.
    The firm, backed by Jack Ma’s Ant Group Co, is the primary from a protracted record of Indian unicorn startups to launch an IPO. It can also be the primary amongst Indian on-line meals aggregators.
    The Zomato IPO comprised a recent situation of fairness shares price Rs 9,000 crore and an offer-for-sale (OFS) price Rs 375 crore by present investor Info Edge (India), which is the mum or dad firm of Naukri.com, based on the knowledge supplied within the draft crimson herring prospectus.

    Zomato has stated it can utilise the IPO proceeds for funding natural and inorganic progress initiatives and basic company functions.
    Incorporated in 2008, Zomato is current in 525 cities in India, with 3,89,932 lively restaurant listings together with a presence in 23 international locations exterior India.