Nomura, Goldman Sachs buy Zomato shares as SoftBank sells 1.17% in Rs 947 crore deal

SoftBank sold a partial stake in food delivery platform Zomato through bulk deals on Wednesday. The transaction was done at Rs 94.7 apiece, taking the deal value to Rs 947 crore.

According to exchange data, SoftBank Vision Fund has offloaded 10 crore shares or 1.17% stake in the company as the lock-in for the post-Blinkit deal ended this week. As of June-end, SVF Growth (Singapore) Pte Ltd held 3.35% in the company.

Further, prominent investors including Morgan Stanley, Nomura, Kotak Mahindra MF, Invesco MF, Goldman Sachs, Franklin Templeton MF, Avendus, Societe Generale picked up stake in the company.

Zomato issued fresh equity shares to all selling shareholders of Blinkit as consideration for the M&A last year. Following the transaction, Zomato had negotiated a 12-month lock-in for these shares, compared to the statutory lock-in requirement of six months.

A majority of these shares are owned by just 3 venture capital investors — Softbank, Sequoia and Tiger Global.

On Monday, Tiger Global, through its affiliate Internet Fund III Pte, exited Zomato by selling its entire stake.

Marquee funds, including Axis Mutual Fund, Goldman Sachs, Citigroup, Morgan Stanley Asia, Societe Generale, picked up stake in the transaction.An analysis of JM Financial suggested that pre-IPO and ex-Blinkit shareholders of Zomato are currently sitting on substantial gains on their investments, a large chunk of which is, however, unrealised.

The brokerage had earlier predicted, given the quantum of these gains, that a sizable proportion of Zomato’s stock could be available for trade in large blocks.

Zomato is majorly owned by public shareholders with near 98% holding, where prominent funds including Fidelity, Canada Pension, Antfin, Motilal Oswal MF among others have a stake in the company.

As per Trendlyne data, the target price of the stock is Rs 101, which shows an upside potential of 9% from the current market prices. The consensus recommendation from 25 analysts for the stock is a ‘buy’.

On Wednesday, the company’s shares closed 5.28% higher at 99.70 on NSE.

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