Shares of online food delivery company Zomato continued to fall for the second consecutive day on Tuesday and closed at Rs 60.35, down more than 8 per cent on the BSE. On Monday too, the shares of Zomato closed down by almost 7 per cent. In this way, the shares of Zomato have fallen by about 15 percent in the last two days.
The fall in Zomato’s shares comes after online grocery delivery company Blinkit (formerly Grofers) announced an acquisition deal (Zomato-Blinkit acquisition). The company said on Friday that its board has approved the acquisition of loss-making Blinkit in a deal worth Rs 4,447 crore.
The deal will be paid for by issuing about 629 million Zomato shares to Blinkit shareholders on a preferential basis. These shares will be issued at a price of Rs 70.76. Under this deal, Zomato will also acquire Hands on Trades Private Limited (HOTPL), a warehousing and ancillary business provider, for Rs 60.7 crore.
According to the deal, Blinkit founder Albinder Dhindsa will remain in the company. Along with this, both the companies will continue to do separate business. According to the terms of the deal, Blinkit’s largest shareholder SoftBank will get 28.71 crore shares of Zomato. On the other hand, Tiger Globe will get 12.34 crore shares of Zomato, BCCL 15 million shares and South Korean investor DAOL 3.66 crore shares.
In addition, the deal will increase Sequoia Capital’s stake in Zomato from 1.33 crore shares to 5.84 crore shares as it will get 4.51 crore new shares of Zomato through the deal.
Meanwhile, shares of Zomato closed at Rs 60.35, down 8.35 per cent on the BSE on Tuesday. Shares of Zomato have fallen 15.24 per cent in the last one month. At the same time, its shares have fallen by about 57.30 percent since the beginning of this year.