New Delhi: Online food aggregator and delivery platform Zomato on Friday said its board has rejected EY’s latest valuation report, which has downgraded its share prices to acquire instant commerce firm Blinkit. The Board has decided to keep at preferential price 70.76 as assessed earlier by EY.
However, Zomato did not disclose the newly revised lower share price as pegged by EY.
The company noted that in the original EY report, the share price is pegged at 70.76 each, in full and full compliance with all provisions of applicable laws. The company had received a fresh report from EY following a specific request from the stock exchanges – National Stock Exchange of India (NSE) and BSE Ltd.
in June, Zomato has Blinkit. agreed to acquire For 4,447 crore (for $569 million) in an all-stock deal. The deal has received shareholders’ approval and is awaiting regulatory approval.
In the past few weeks, Zomato shares have come under significant selling pressure as the one-year lock-in period for internal investors holding around 613 crore shares or 78% of Zomato’s shares ended on Saturday 23 July. As part of the sell-off in Zomato, its pre-IPO investor Moore Strategic Ventures sold its entire stake, marking a loss last week on the more than a year-old bet. On August 3, Uber, the second largest shareholder of Zomato, sold its entire 7.78% stake through block deals. 3,088 crores. US ride-sharing firm sold at its share price Fidelity and ICICI Prudential Life Insurance Company Limited on 50.44.
US investment firm Tiger Global said it sold over 184 million Zomato shares, or 2.34% stake, in the open market between July 25 and August 2. After the sale, Tiger Global now holds a 2.77% stake in the company.
Zomato concludes its IPO at the issue price of moved to an all-time high of 76, in July last year 169 per share in November. Its shares have recovered somewhat after initial fears after the lock-in period is over. Its shares were currently trading at 58.80 each, up 1% on the BSE.
Zomato net loss reduced 186 crore during the June quarter 359 crore during the same period last year, as the food delivery platform focused on profitability amid a sharp fall in its share price.
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