Zomato shares fell 6% to Rs 66.50 on Monday’s NSE intraday session after the firm’s board approved the purchase of quick-commerce company Blinkit for Rs 4,447 crore (about $567 million) in an all-stock deal. Zomato will acquire 33,018 equity shares in Blink Commerce Pvt Ltd. (BCPL).
Also Read| Sensex surges 780 points while Nifty around 15,930 in early trade
The purchase, according to Zomato, is in keeping with the company’s objective of investing in the quick commerce segment.
Also Read| Fuel price June 27, 2022: Petrol Rs 96.72, diesel Rs 89.62 in Delhi
This transaction will be carried out by the issuing and allocation of up to 628.5 million fully paid-up equity shares of Zomato, each with a face value of Rs 1 and a price of Rs 70.76.
Also Read| US Stock Market: DJIA, S&P500, Nasdaq and Russell ended in green on Friday
The deal is likely to be completed in early August. The deal is subject to shareholders and stock exchange approval.
Also Read| Week ahead: Global cues, rupee movement to weigh on Sensex, Nifty
Zomato was 5.76% down at Rs 66.30 at 12:56 PM, while the Sensex index had increased by 1.21%. On the NSE and BSE, a total of 55 million equity shares have been traded.
Also Read| Week in review: Sensex, Nifty rise amid positive cues from global peers
Despite today’s dip, the stock has outperformed the market over the last month, rising 7.9% compared to the BSE Senex index’s 2.78% decline.
Also Read| Stocks that should be on your watchlist on Monday, June 27, 2022
However, Zomato’s stock price has dropped 49% in the last six months, compared to a 7% drop in the benchmark index. It has fallen 61% from its all-time high of Rs 169, set on November 16, 2021.
Also Read| Trending Stocks: Zomato, Dr Reddy’s, Axis Bank and others in news today
Zomato generated Rs 9,375 crore with its initial public offering (IPO) in July of last year, issuing shares at a price of Rs 76 per share. On May 11, 2022, the stock touched a record low of Rs 50.35.