Antfin Singapore Holding sold 18.54 crore equity shares in block deals for Rs 4,771 crore. Economic Times mentioned that a two-block count of 9.27 crore shares in each part were sold. The stock fell initially but ended at Rs 263.20 on the NSE, which is a 0.39 percent increase compared to Monday’s closing price. Following this round, the shares of Antfin in Zomato reduced to 2.2 percent.
The selling shareholder will have a lock-in period of 90 days for selling shares. The block deal will have placement agents such as Morgan Stanely and Goldman Sachs. The investment firm UBS has increased its price target on the stock from Rs 260 to Rs 320 while maintaining its buy recommendation on the food delivery platform. This marks the second-highest target price following CLSA’s price of Rs 350. The shares of Zomato had a 0.45 percent curve from hights of the day to end lower at Rs 263.24 on Monday while the stock has increased by 111 percent in 2024.
Zomato offers an online food delivery platform to provide information, menus, and food ordering services. The food major offers services in over 23 countries along with India and it plans to expand its network globally. This food delivery company is increasing its workforce and infrastructure to support growing business and market requirements. The company announced its acquisition of Blinkit and Zomato Entertainment for 48 million USD. The food-tech startup offers a platform to provide information about restaurants, menus, and food ordering services.
The food tech major has secured around 1.69 billion USD across multiple funding rounds, including 252 million USD raised during a Series J funding round led by Kora. According to the data intelligence platform tracxn, the company has 29 institutional investors including Sequoia Capital, Ant Group, and Info Edge Ventures. Zomato also acquired Blinkit in June 2022 to solidify its position in the food and grocery delivery sector. The development came after the Ant Group’s Alipay sold its 3.44 percent stake in Zomato. The development came when the app-based delivery platforms saw increased investor interest. Zomato faces competition from Swiggy, Eastsure, and others.
Conclusion :
The VC firm Antfin Singapore Holdings sold its 18.54 crore equity shares in block deals for Rs 4,771 crore. The food giant reported a 0.4 percent increase in its shares on Tuesday. Zomato is a food and grocery delivery platform that provides search hotels and book reservation options to its users. The holdings of Antfin were reduced by 2.2 percent, following this deal.
The block deals were in two parts with 9.27 crore shares per part. The placement agents for the block deal were Morgan Stanely and Goldman Sachs. Zomato has raised around $1.69 billion across all its funding rounds since its inception. The company competes with other food delivery platforms including Swiggy, Uber Eats, and more. The stake for Antfin was nearly 4.24 percent in the company at the end of June while the closing price of the stake on Monday was valued at around Rs 10,000 crore.
