Tiger Global Fully Exits Zomato: Sells Remaining Stake
New Delhi, August 28th – Prominent US-based investment giant, Tiger Global, has successfully divested from the renowned online food delivery platform, Zomato. This strategic move was executed through the complete sale of its shareholdings, netting an impressive sum of Rs 1,123.85 crore.
Tiger Global made this significant departure from Zomato via a series of open market transactions on August 28th, as confirmed in an official filing with the Bombay Stock Exchange (BSE).
In this transaction, the venture capital powerhouse offloaded approximately 12.34 crore shares, equivalent to a 1.44% stake in Zomato, all at an average share price of Rs 91.01.
Closing at a commendable Rs 92.35 on Monday, the Zomato stock experienced a 1.5% upswing, indicative of its enduring appeal to investors.
Nonetheless, the near-term trajectory of Zomato’s stock is projected to be marked by fluctuations due to market conjecture surrounding potential divestments by pre-IPO shareholders, venture capital and private equity entities, and Chinese investors of the company. This uncertainty also extends to erstwhile shareholders of Blinkit who had obtained shares via a share swap agreement. A recent analytical report by JM Financial Institutional Securities underscored these speculations.
Elaborating on this market sentiment, the report stated, “While precise estimations of these potential exits remain elusive, it’s worth noting that a number of these stakeholders have already seen substantial gains, albeit many of these remain unrealized. A retrospective analysis of prior actions by these investors implies that a portion of them might be inclined to secure profits given the recent surge in stock value.”
The report further noted that a considerable volume of Zomato’s shares could soon be available for trading.
In light of these developments, the report advised, “We strongly encourage long-term investors to capitalize on these liquidity events by establishing a substantial Zomato position. The company not only offers a robust entry point into India’s burgeoning online food services sector but has also transformed into a diversified online retail contender following the Blinkit acquisition.”
Numerous pre-IPO and ex-Blinkit investors find themselves in possession of significant unrealized profits. Scrutinizing the share acquisition costs of Zomato’s pre-IPO and ex-Blinkit shareholders reveals substantial gains on their investments, although a significant portion of these gains remains unrealized.
Zomato stands as an Indian multinational enterprise that specializes in aggregating restaurants and facilitating food delivery services. The company’s inception took place in 2008, courtesy of the efforts of Deepinder Goyal and Pankaj Chaddah.
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