Zomato shares hit a record low of Rs 75.55, down 1.4% on the BSE in Wednesday’s intra-day trades in an otherwise robust market, on reports that the company and online grocery provider Blinkit (previously Grofers) are in merger negotiations.

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The stock fell 5.5% from its intraday high of Rs 79.95. The stock dropped below its previous low of Rs 75.75, which was set on February 15, 2022. At 10:22 a.m., the S&P BSE Sensex was up 1.25%, or 697.68 points, at 56,474.53. The counter saw massive trading volumes, with a total of 15,57,361 equity shares changing hands in early trade on the BSE.

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According to a Business Standard report, Zomato and Blinkit are in discussions for a merger, despite the fact that the food delivery platform revealed in a regulatory filing on Tuesday that it had provided a loan of $150 million to Grofers India.

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What is being discussed is a share-swap agreement in which Blinkit would be valued at $750-800 million. Blinkit shareholders and investors will receive around 10% of Zomato stock. SoftBank, which owns 40% of Blinkit, will have a 4-4.5% stake in the amalgamated business, according to Business Standard.

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In a BSE filing, Zomato said it has issued a loan to Grofers at an interest rate of 12% per year or higher with a term of no more than a year, which will be given in one or more tranches.

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Zomato’s board of directors also authorized the purchase of a 16.66% stake in Mukunda Foods for $5 million. Mukunda develops and produces smart robotic equipment to automate restaurant meal preparation.