Tiger Global Halved Zomato Stake Ahead Of Uber's Exit
Two key investors exited Zomato within days the one-year lock-in on their shares ended.
Tiger Global Management LLC cut its holding in Zomato Ltd. by half ahead of the exit by Uber Technologies Inc. on Aug. 3.
The private equity investor sold stake daily between July 25 and Aug. 2, bringing its ownership down to nearly 2.4%, according to regulatory filing.
Uber sold 61.2 crore shares of the online food delivery aggregator for Rs 3,088 crore through an open market transaction brokered by the Bank Of America on the BSE, according to the term sheet reviewed by BQ Prime.
The exit by two major investors coincides with the opening of the one-year lock-in period for the pre-IPO shareholders on July 23. Shares fell to an all-time low July 22.
Zomato delivery volumes climbed cumulatively on both the stock exchanges since July 22. During the period Tiger Global sold shares, its combined delivery percentage stood over 30% until Aug. 3, when it climbed to 57.8% due to Uber's exit via open market.
The exit by two key shareholders raises eyebrows over the confidence of key investors about Zomato's decision to acquire Blinkit in an all-stock deal. The deal was approved by shareholder, a large proportion of whom were foreign institutional shareholders. Yet, two large investors then decided to exit.
To be clear, investors voted on the postal ballot to acquire Blinkit before the one-year lock-in ended.
