Zomato to see SoftBank ‘s exit with a 1.1% stake sale
Through a block sale, SoftBank's SVF Growth plans to sell 1.1% of its Zomato stake for $135 million. The shares will be offered for sale for Rs 120.5 each, which is somewhat less than the BSE's closing price of Rs 121.8 on Thursday. With this action, SoftBank will fully exit Zomato in an effort to reduce its funding in Indian firms.
Alipay exited Zomato last week by selling its entire 3.44% stake in the company via multiple block deals worth a cumulative INR 3,336.7 Cr. However, the shares were lapped up by investors like Morgan Stanley and Fidelity Investment.
It is pertinent to note that SoftBank has been lowering its stake in the listed new-age Indian entities for the last few months. In August this year, SVF Growth offloaded its 1.15% stake, or 10 Cr shares, in Zomato, bringing down its holding in the company to 2.17%.
On the other hand, SoftBank’s SVF Doorbell (Cayman) offloaded 2.5% of its stake in logistics unicorn Delhivery last month for almost INR 740 Cr. The Japanese firm has also been trying to exit other listed Indian startups from its portfolio, including Paytm and PB Fintech.
Meanwhile, a few other international investment firms, including China’s Alipay and Alibaba, have also been trying to exit the listed companies from their India portfolio.
In November, Warren Buffett-led Berkshire Hathaway also exited Paytm by offloading its entire 2.46% stake in the company for about INR 1,370.6 Cr.
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