Zomato Shareholding Sees Shift as Antfin Singapore Offloads Stake

On Wednesday, Antfin Singapore Holding, a subsidiary of Alibaba affiliate Ant Financial Group, reduced its ownership in the online food delivery platform Zomato. Through open market transactions, Antfin Singapore divested 2% of its holdings, amounting to over 17.6 crore shares.

Bulk deal data from the BSE reveals that Antfin Singapore offloaded the shares in two tranches, priced between ₹160.11 and ₹160.40 each. This translates to a total deal value of ₹2,827 crore. Following this transaction, Antfin Singapore’s stake in Zomato has shrunk from 6.32% (as of December 2023) to approximately 4.3%.

Shifting Landscape with New Investor Entry

Coinciding with Antfin Singapore’s sale, Morgan Stanley Asia (Singapore) acquired a 0.65% stake in Zomato. This translates to the purchase of 5.68 crore shares for a total of ₹909.55 crore. The combined effect of these transactions resulted in a 2.68% decline in Zomato’s stock price on the BSE, settling at ₹161.60 per share.

Contextualizing the Sale in Light of Zomato’s Performance

This development comes after Zomato’s recent financial success. The company reported a consolidated net profit of ₹138 crore in the third quarter, primarily driven by the burgeoning quick commerce segment. It’s noteworthy that, based on the December quarter shareholding pattern, Antfin Singapore held a 6.42% stake in Zomato.

Historical Precedent and Zomato’s Stock Performance

In November 2023, another Alibaba entity, Alipay Singapore Holding Pte, exited its Zomato investment through a block deal worth ₹3,326.4 crore, representing 3.4% of the company’s equity. Since its initial public offering (IPO) priced at ₹76 per share, Zomato’s stock has more than doubled in value. This positive performance can be attributed to the company achieving profitability for three consecutive quarters, a feat that has been rewarded by investors and brokerage upgrades.