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Published: August 20, 2024
Updated: August 20, 2024

Zomato Shares in Focus as Antfin Plans Block Deal Worth Rs 3,420 Crore

Block Deal Details

Zomato shares are in the spotlight as Antfin Singapore Holdings plans to sell 1.54% stake in the company via a block deal today. The floor price is set at Rs 251.68 per share, valuing the deal at Rs 3,420 crore or $408 million.

Previous Stake Sales

This is not the first time Antfin is selling its stake in Zomato. In March, it sold 2.1% stake in block deals at Rs 160 per share, worth $341.50 million. Additionally, China's Alipay exited Zomato in November 2023, selling its entire 3.44% stake.

Brokerage Views

Foreign brokerage UBS has maintained its 'Buy' call on Zomato with an increased target price of Rs 320. Morgan Stanley has also maintained an 'Overweight' stance with a target price of Rs 278. Elara Securities noted that Zomato's food delivery segment posted adjusted revenue growth of 30% YoY in Q1FY25, outpacing DoorDash's 23% YoY revenue growth in Q2CY24.

Zomato shares are expected to be volatile today as Antfin plans to offload its stake in the company. The block deal, valued at Rs 3,420 crore, may impact the stock price. However, brokerage firms remain bullish on Zomato's growth prospects, driven by its food delivery and advertising revenue. Investors should exercise caution and consult with a financial advisor before making any investment decisions.