Zomato to Acquire Blinkit
According to reports, the investors of food delivery platform Zomato approve the acquisition of quick commerce grocery company Blinkit (formerly Grofers).
Among all the voters, about 97 percent voted in favor of Zomato to acquire Blinkit(formerly Grofers) for 4,447 crore ($570 million) in an all-stock deal. While 14.6 percent of the public institutions voted against the deal, 99 percent of the public non-institutions voted in favor.
After the approval was notified to the stock exchange yesterday, Zomato's stock traded in the green and ended the session up 5.52 percent at Rs. 43.95 percent share. The stock price had nosedived over the past two trading sessions as it almost fell 11 percent on Monday and 14 percent in intraday trading after the mandatory lock-in period for pre-IPO shareholders expired last week.
Reports suggest that, Zomato allotted 4.6 lakh equity shares from its Esop (employee stock option plan) pool at an exercise price of one rupee.
The Gurugram-based company had a blockbuster listing on the Indian stock exchanges last year in July, and its shares more than doubled to hit an all-time high of Rs. 169.10 on November 16, 2021. Since then its stock price has declined by almost 70 percent.
Blinkit acquisition elongates the path to profitability and despite management guidance on a break-even in food delivery; investors are not giving much benefit of a doubt. Night is darkest just before dawn
According to the brokerage firm Jefferies, Blinkit acquisition elongates the path to profitability and despite management guidance on a break-even in food delivery; investors are not giving much benefit of a doubt. Night is darkest just before dawn.