Zomato’s board has approved the acquisition of Blinkit 4,447 crore in an all-stock deal, the food delivery company said in a statement on Friday.
It said that the board has approved the acquisition of 33,018 equity shares of Blink Commerce Pvt Ltd from its shareholders for a total purchase consideration. 4,447.48 crore at a cost of Rs. 13.45 lakh per equity share.
The transaction will be done through issue and allotment of fully paid-up equity shares of the company up to Rs.62.85 crore. zomatowhose marked price is Rs.1, each at the cost of 70.76 per equity share.
Zomato said, “This acquisition is in line with our strategy to invest in the Quick Commerce business.
This move comes when Zomato wants to take advantage of the fast growing market. The company already holds over 9% stake in Blinkit.
In March this year, Zomato approved the grant of loans of up to $150 million to Blinkit, formerly Grofers, in one or more tranches.
Zomato shares closed up 1.15% At 70.35 on BSE on Friday.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.