Zomato shares drop as stake matching Uber’s put up for sale

Zomato fell as much as 9.5% in Mumbai shortly after opening on Wednesday, before paring the drop to 1.6% at 54.65 rupees as of 9:55am local time.

Bloomberg | | Posted by Yagya Sharma

Shares of of India’s Zomato Ltd declined as an undisclosed shareholder offered to sell 612 million shares at a discount, a stake matching that held by Uber Technologies.Zomato fell as much as 9.5% in Mumbai shortly after opening on Wednesday, before paring the drop to 1.6% at 54.65 rupees as of 9:55am local time.The selling shareholder in the block trade offered the stock at between 48 rupees and 54 rupees a piece, according to terms of the deal seen by Bloomberg News late Tuesday. The discount versus the last closing price was as wide as 13.6%. BofA Securities is the sole bookrunner of the block trade.Also Read| Zomato shares crash to record low after mandatory lock-in period endsIndian daily Business Standard reported on Tuesday that Uber is the holder disbursing the shares. Uber owns 612.2 million shares in Zomato, according to data compiled by Bloomberg.Zomato raised $1.3 billion with its offering about one year ago, opening room for a slew of Indian startups that tapped investors through first-time share sales in the South Asian country. Shares of the Indian online food-delivery platform plunged last week following the expiry of a lock-up period for investors in the company prior to the offering.Pre-IPO investors in the New Delhi-based company include China’s Ant Group Co., Info Edge India, Uber Technologies Inc. and Sequoia Capital.Zomato shares jumped 20% on Tuesday, the most since the debut session last year, as a number of block trades changed hands after it released its quarterly performance report. The result showed a smaller-than-expected loss and revenue in line with analyst expectations.

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