Zomato gains 5% after 100 MN shares change hands via block deal

Category : Announcements

Investors sold a piece of Zomato, a food delivery company, for a lot; Zomato now earns profit, plans to charge fees, and offers more than food, which experts like.

Zomato Stake Sale:

• A company called Zomato, which delivers food, had a stake (ownership) of about 1.17% available for sale.
• A big investor, likely SoftBank, sold this stake for about Rs 947 crore (Indian currency).
• This happened through a deal where shares were sold at an average price of Rs 94.70 each on August 30.

Tiger Global's Share Sale:

• Another investor called Tiger Global recently sold its entire stake (1.44%) in Zomato on August 28.
• Tiger Global made a total of about Rs 1,123.85 crore from this sale.

 Zomato's Profit and Business Strategy:

• Zomato, which used to have losses, recently made a profit of Rs 2 crore between April and June.
• To make more money, Zomato decided to charge a fee of Rs 2 on every order, no matter how much you order.

Expert Opinions:

• Morgan Stanley, a company that understands investments, thinks Zomato's new fee plan is a good idea. They say it could help Zomato make more profit.
• HSBC, another expert company, increased its prediction for Zomato's share price by almost 18% to Rs 120. They also think Zomato's new focus on local services is valuable.

Hyperlocal Focus:

• Zomato is getting more into local services, like delivering things other than food, and HSBC believes this could become a big part of Zomato's business in the future.
• The local services arm of Zomato, called Blinkit, is currently valued at $5 billion.

Summary:

Big investors are buying and selling pieces of Zomato, which delivers food. Zomato is making a profit now and plans to charge a small fee on orders. Experts think these moves could help Zomato make more money, and they are excited about Zomato's focus on local services, like delivering things from nearby places.