Shares of Zomato tanked over 9% in early trade today amid a report that Uber Technologies was likely to sell its whole 7.8% stake in the Indian food delivery firm. The block deal will worth $373 million. Zomato stock crashed 9.62 percent to Rs 50.25 against the previous close of Rs 55.60 on BSE.
Zomato stock trades higher than 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages.
The stock has fallen 60 per cent in 2022 and lost 61 per cent in a year.
The stock hit a 52-week high of Rs 169.10 on November 16, 2021 and a 52-week low of Rs 40.55 on July 7, 2022.
Total 6,751.86 lakh shares of the firm changed hands amounting to a turnover of Rs 3,439 crore on BSE. The market cap of the firm fell to Rs 43,064 crore on BSE.
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The deal could be carried out in a range of Rs 48-54, a term sheet seen by Reuters stated, adding that would be at a 2.8%-13.6% discount to the latest close. Zomato stock rose 20% to Rs 55.55 on Tuesday post Q1 earnings.
BofA Securities is the sole bookrunner for the deal. On Monday, Zomato reported a good set of earnings for the quarter ended June.
Zomato’s Q1 loss narrowed in Q1 led by an increase in orders for restaurant meals on its platform.
The firm reported a net loss of Rs 186 crore for the quarter ended June 2022 against a net loss of Rs 356 crore year ago. Revenue from operations rose 67.44 percent to Rs 1,413.9 crore in Q1 against Rs 844.4 crore logged in the year-ago quarter.
The company’s adjusted revenue rose 18 per cent quarter-over-quarter (QoQ) and 56 per cent year-over-year (YoY) to Rs 1,810 crore in Q1FY23.
Adjusted EBITDA loss fell to Rs 150 crore (-8 per cent of Adjusted Revenue) in the quarter under review as compared to Rs 220 crore (-15 per cent of Adjusted Revenue) sequentially.
Zomato’s revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, zoomed 67 per cent to Rs 1,414 crore in the June quarter against Rs 844 crore a year ago.