SoftBank’s investment arm, Svf Growth (Singapore) Pte. Ltd, is gearing up to execute a significant divestment by selling off a 1.17% stake in Zomato Ltd on August 30. This strategic move is anticipated to yield an estimated sum of ₹940 crore ($114 million) for the Japanese investor. The decision comes on the heels of Svf Growth’s earlier ownership of a 3.42% stake in Zomato as of June 30. However, this stake had been subject to a mandatory 12-month lock-in period following Blinkit’s acquisition, which concluded on August 25. This linkage of stake transfer to Zomato’s acquisition of the quick-commerce company in 2022 underscores the intricacies of the transaction.
The specific terms of the deal indicate that the floor price for this block deal stands at ₹94 per share, representing a modest 0.7% discount from the closing price observed on the previous trading day. The management of this sale, orchestrated on behalf of the investors, falls under the purview of Kotak Securities Ltd.
In a related development, the investment landscape saw Tiger Global-backed Internet Fund III Pte Ltd making its own strategic moves. On August 28, the fund divested a significant portion of its Zomato shares, amounting to 123.5 million shares or 1.44% of the company, at an average price of ₹91.01 per share. This bulk deal was facilitated on the BSE. Further scrutiny of Tiger Global’s activities reveals a larger pattern; between July 25, 2022, and August 2, the hedge fund sold over 184 million Zomato shares, accounting for 2.34% of the company’s total shares, in the open market.
In a parallel narrative, DST Global, operating through its investment vehicle Apoletto Asia, sold nearly 32 million Zomato shares at ₹90.10 apiece. This demonstrates a multifaceted investment landscape where players adjust their positions according to market dynamics. Notably, Axis Mutual Fund, SBI Life Insurance Co., ICICI Prudential Life Insurance, Founders Collective Fund, Morgan Stanley Asia Singapore, and Societe Generale have taken active roles in acquiring shares of the popular food aggregator.
Reflecting this flurry of activity, Zomato’s most recent trading session saw its shares climb by 2.54%, culminating in a closing price of ₹94.70 per share on the National Stock Exchange (NSE). This dynamic series of developments showcases the intricate maneuvers and strategic shifts that characterize the investment landscape.
