Zomato Ltd shares fell almost 2% on Tuesday, after news that China's Antfin Singapore Holdings sold a 1.54% interest in the meal delivery company in block agreements.
The food delivery giant's shares fell to a low of Rs 257.10 on the BSE, a 1.98% drop, despite a considerable increase in trading activity. A total of 19.86 crore shares were exchanged, equivalent to a transaction of Rs 5,115.21 crore — a substantial rise compared to the two-week average.
According to reports, Antfin Singapore Holdings sold shares at a floor price of Rs 251.68 per share, for a total transaction value of Rs 3,420 crore (or $408 million). However, CNBC-TV18 stated that certain transactions happened at Rs 258 per share.
Antfin Singapore Holdings owned 4.30% of Zomato in the June quarter, which amounted to 37.38 crore shares. Earlier in March, the corporation sold a 2.1% interest in Zomato for around Rs 160 per share, totaling $341.5 million.
Antfin owned 6.42% of the firm as of December 31, 2023. In November 2023, China's Alipay also quit Zomato by selling its full 3.44% ownership.
Despite the recent slump, Zomato shares have fared admirably, rising 109% so far in 2024 and 190% in the previous year. UBS still rates Zomato as a 'Buy' and has lifted its target price to Rs 320 from Rs 260. Last week, Morgan Stanley maintained an 'Overweight' rating on Zomato, with a target price of Rs 278.
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