Zomato Share: shares of food delivery firm zomato It rose 4 per cent to Rs 68.60 on the BSE, thus gaining 5.5 per cent in the last two trading days. This is stated by the company after meeting on Friday, June 24 to consider the proposed acquisition by the company. “The meeting of the Board of Directors of the company is scheduled on June 24 to consider possible takeover transaction by the company, for the same may be considered by way of issuance of equity shares,” Zomato said in a statement. Exchange filing Tuesday after market hours.
According to a report in Economic Times, Zomato is in talks to acquire Blinkit, formerly Grofers, in a share-swap deal, several people informed on the matter. This comes after Zomato last year invested $100 million in Gurgaon-based quick-commerce startup, which holds around 10 per cent stake.
Ever since Zomato invested in Blinkit, the merger is being treated as an end result. The people said that though the contours of the deal are being finalized, it is expected that Zomato shareholders will get 10 Blinkit shares for every one they hold in their company. Blinkit will be valued at around $700-800 million based on Zomato’s current market capitalization. This is slightly higher than Blinkit’s previous valuation of $1 billion.
During the Zomato Q4 result media interaction last month, questions were also raised on media reports of a possible M&A between Zomato and Blinkit. To this, Chief Executive Officer (CEO) Deepinder Goyal replied that the company remains consistent on the accelerated commerce segment and Blinkit has made decent growth in the last six months.
He said, “We remain consistent on Accelerated Commerce, especially given how synergistic it is to our core food delivery business, and are excited by the progress Blinkit has made in this area. As the business is in its early stages, there is still little hanging fruit to drive growth and efficiency.”
Goel said, “Blinkit has seen decent growth over the past six months, and its operating losses have also come down significantly. We have committed to provide them with short-term loans of up to $150 million to meet their short-term capital needs. Other than that, there is nothing to share at this time.”
zomato share price history
In the past one month, Zomato has outperformed the market with gains of up to 18 per cent as compared to 4 per cent fall in the S&P BSE Sensex. The stock had hit a 52-week low of Rs 50.35 on May 11, 2022.
However, in the last six months, Zomato’s share price has lost more or less 51 per cent as compared to the 8 per cent fall in the Sensex. It has corrected 59 per cent from its record high of Rs 169 on November 16, 2021. In July last year, Zomato raised Rs 9,375 crore through initial public offering (IPO) by issuing shares at a price of Rs 76 per share.
Last month, Zomato reported a net loss of Rs 359 crore in the fourth quarter of FY 2021-22. The company’s revenue increased to Rs 1,211.8 crore during the same period. The net loss has almost tripled compared to the year-ago period, when it stood at Rs 134.2 crore. However, there has been a growth of 75 per cent in revenue as against Rs 692.4 crore recorded in Q4 FY21.
Goyal said the company is aiming for accelerated growth along with reduction in losses in the coming quarters. “We are clear about what our long-term shareholders expect of us and we are working hard to meet both growth and profitability expectations,” he added.
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