Shares of Zomato have opened higher after a large block deal took place in the stock in the pre-market block window.

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10 crore shares of the food delivery platform exchanged hands in the block deal, according to data available on the exchanges. The shares exchanged hands at a price of Rs 94.7 apiece. This takes the total transaction value to Rs 947 crore.

The total number of shares traded in the block deal amount to 1.17 percent of the company's total equity.

This also confirms CNBC-TV18's news break over the last week where it reported that a large block deal is in the offing. SVF Growth Fund is the likely seller in the transaction. SVF Growth Fund is a unit of Softbank.

CNBC-TV18 had reported on Tuesday that SVF Growth Fund may sell 10 crore shares of the company or 1.17 percent of the total equity via block deals. The price of the sale was said to be Rs 94 per share.

As of the June quarter shareholding pattern, SVF Growth (Singapore) Pte. Ltd. had 3.35 percent stake in the company totalling to around 28 crore shares.

Zomato had a block deal earlier in the week as well, where 0.4 percent of the total equity exchanged hands in a transaction valued at Rs 288 crore. The deal took place at Rs 90.1 per share.

Brokerage firm HSBC maintained its buy rating on Zomato and raised its price target to Rs 120 from Rs 102 earlier. The firm wrote that a deep dive into hyperlocal raises further conviction on the long-term value of Blinkit, which is now valued at $5 billion.

The note further said that hyperlocal can become a much bigger business for Zomato in the long-term.

Shares of Zomato are trading 3.7 percent higher at Rs 98.20. The stock made an intraday high of Rs 99.60. Out of the 27 analysts that track the stock, 23 have a buy recommendation.

First Published:Aug 30, 2023 8:58 AM IST