SoftBank to Fully Exit Zomato, Plans Sale of Remaining Stake

Japanese investment giant SoftBank, having recently sold approximately 10 crore shares in Zomato, equivalent to 1.17% of the company’s equity, is now reportedly planning a complete exit from the online food delivery platform within the next few months.

Sources indicate that SoftBank retains a residual stake of approximately 2.18% in Zomato, which it intends to divest through block deals.

Money Control was the first to report this development.

SoftBank initially acquired its stake in Zomato in June of the previous year, with an investment of around Rs 71 per share. For SoftBank, Zomato has proven to be a lucrative investment, yielding substantial profits.

Both SoftBank and Zomato have not yet issued official statements regarding this matter.

On Wednesday, a significant transaction involving around 10 crore Zomato shares, equivalent to 1.17% of the company’s equity, took place, with a total transaction value of approximately Rs 947 crore. It is likely that SoftBank’s SVF Growth Fund was the seller in this substantial deal.

SVF Growth (Singapore) Pte. Ltd. previously held a 3.35% stake in Zomato, which amounted to approximately 28 crore shares.

This latest block sale follows the recent exit of another foreign institutional investor, Tiger Global Management, which divested its entire 1.44% shareholding in Zomato earlier in the week, resulting in earnings of approximately Rs 1,123.85 crore. Tiger Global sold approximately 12.34 crore shares, representing a 1.44% stake in Zomato, at an average price of Rs 91.01 per share.

HSBC, a brokerage firm, has maintained its buy rating on Zomato and raised its price target from Rs 102 to Rs 120 in a recent note. The note highlighted the potential for hyperlocal services to become a more significant part of Zomato’s long-term business strategy.