The Uber Technologies Said to Have Sold 7.8 Percent Stake in Zomato for $392 Million via Block Deal
Shares of Zomato fell up to 6.8 percent on Wednesday, in their biggest drop in more than a week. The stock cut some losses and was trading down 2.6 percent by 0614 GMT.
BofA Securities was the sole bookrunner for Wednesday's transaction.
Zomato said on Monday it had recorded more orders and narrowed its loss for the June quarter to Rs. 186 crore from Rs. 356 crore a year earlier.
On Wednesday, the shares of Zomato fell after reports said that Uber Technologies planned to sell its entire stake in the Indian food delivery firm.
Zomato shares were last down 1.5 percent at Rs. 54.7, with more than 232 million shares traded, twice their 30-day average.
As per Reuters calculations, the stake sale by Uber was worth Rs. 3,087 crore.
One of the sources said the stake was bought by around 20 global and Indian funds, including Fidelity, Franklin Templeton and India's ICICI Prudential.
Fidelity could not immediately be reached for comment, while Franklin and ICICI declined to comment.
Uber Technologies on Wednesday sold its 7.8 percent stake in Indian food delivery firm Zomato for $392 million (roughly Rs. 3,100 crore) via a block deal on local exchanges, two sources familiar with the matter told Reuters.
The Zomato block deal was executed at Rs. 50.44 per share. Zomato and Uber did not immediately respond to requests for comment.
Reuters reported on Tuesday the offer size of the block deal was set to be for 612 million shares, according to its term sheet, which did not disclose the seller.