Alibaba to sell Zomato shares worth $200 million in block deal on Wednesday at discount rate

Zomato Share Block Deal: On Wednesday, a big movement can be seen in the stock of online food delivery app company Zomato. China’s leading e-commerce company Alibaba Group Holding Limited is preparing to sell 3 percent stake in Zomato. Through the block deal, Alibaba is going to buy shares worth $200 million i.e. Rs 1640 crore. Morgan Stanley is playing the role of a broker in this deal.

It is believed that this block deal can happen on Wednesday. In which Alibaba Group is going to sell Zomato’s shares at a discount of 5 to 6 percent from Tuesday’s closing price. Zomato’s stock closed at Rs 63.55, down 1.32 per cent, at the close of the market on Tuesday.

Alibaba has around 13 per cent stake in Zomato. Alibaba has kept this holding through two subsidiary companies. After selling 3 per cent shares in a block deal on Wednesday, Alibaba will be left with 10 per cent stake. Earlier in July, after the end of the lock-in period in Zomato, the company’s major investors Sequoia Capital India, Tiger Global Management and Uber had sold their stake in block deal or open market.

This block deal is going to be sown in Zomato when the people posted at the senior level of the company have resigned. The company is also laying off about 4 percent people. Zomato is trading below its IPO price of Rs.76. The stock made a high of Rs 169 and fell to close to Rs 40. The listing of Zomato’s stock on the stock exchange was spectacular. The share of Rs 76 was listed around Rs 115. But for the past several months, the stock has disappointed its investors.

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