05 Aug , 2022 By : Monika Singh
US hedge fund Tiger Global has sold 184.4 million shares or 2.34% of its shareholding in Zomato in a series of bulk deals between July 25 and August 2, becoming the third investor to offload shares in the foodtech company.
Tiger Global held a 5.11% shareholding in Zomato, which is now reduced to around 2.77%, according to a notification by the foodtech company to the stock exchanges on Thursday. At least three investors, including the hedge fund, have exited Zomato after the mandatory one-year lock-in period for pre-IPO investors ended last week.
On Wednesday, Uber exited Zomato through a block deal, selling its entire 7.8% stake in the foodtech player for about Rs3,087 crore. The deal was executed at Rs 50.44 a share. The buyers included global investment and venture capital firms such as Keysquare Capital, James Street, Templeton Global, FMR and Mirae Asset Global Investments. British asset management firm Schroders and US asset manager BlackRock also took part in the block deal, sources close to the development told FE.
According to the term sheet seen by FE, Uber had put its entire 7.8% stake, amounting to nearly 612 million shares on the block, with the offer priced between Rs48 and54 a share. This is a 2.8-13.6% discount to Zomato’s share price close on Tuesday.
Prior to the Uber sale, pre-IPO investor Moore Strategic Ventures also sold its entire shareholding in Zomato at a Rs4 crore loss in the last week of July. Moore reportedly sold close to 4.25 crore shares in Zomato at Rs 44 per share amounting to Rs187 crore. The investor had purchased an undisclosed stake in Zomato for Rs 191 crore just a few months before the Zomato IPO.
Despite the sell-off pressure, Zomato’s share price has gained 22% in the last five days and another 5% in the last month. However, on a year-to-date (YTD) basis, Zomato has tanked 60%, and 40% in the last six months. After Thursday’s trading session, the share price settled at around Rs 57.75 on BSE, which is up 4% intraday, even as shareholders offloaded a large number of stocks.
Zomato’s net loss halved in the April-June quarter of the fiscal. The food tech player narrowed its consolidated loss to Rs 186 crore for Q1FY23 from Rs 361 crore in the same quarter last year (Q1FY22). Revenues during the quarter jumped a strong 68% y-o-y to Rs 1,414 crore.
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