According to reports, food delivery company Zomato is planning to complete the acquisition of Blinkit to its board on June 17.

Zomato will pay in its shares for Blinkit, formerly Grofers, according to reports.

Under the proposal, Blinkit’s shareholders are expected to get a little less than 10 percent stake in Zomato. Blinkit’s largest investor, SoftBank Vision Fund, will get an almost four percent stake in the foodtech company. Blinkit’s investors may have to compulsorily hold Zomato’s shares for at least six months.

Based on Zomato’s closing stock price of Rs. 69.85 on the BSE, a 10 percent stake is worth about Rs. 5,500 crore ($ 708 million). Zomato already holds about 10 percent stake in Blinkit.

Reports suggest that, the deal was expected to value Blinkit at around $700-800 million based on Zomato’s market capitalization at that time. That was lower than Blinkit’s last valuation of a little over $1 billion.

Zomato is expected to issue one share for 10 Blinkit shares. The merger has been speculated on as an eventual outcome ever since Zomato first invested in Blinkit last year.

“We are very conscious that we do not have to overpay for any M&A (merger and acquisition) and we have strong governance processes. We will follow the process and not make any mistake on that front,” says Deepinder Goyal, founder, Zomato.

Akshant Goyal, chief financial officer, Zomato says, “What changed in the case of quicker deliveries is the product market fit and the customer proposition has become much stronger than kiranas. If we take a city where GMV (gross merchandise value) for online grocery is stagnating, they (quick commerce apps) are now at multiple times of that GMV. The first hurdle was whether it (quick commerce) is a large enough market. On that we think yes. It is a sustainable business and we also have a synergistic food delivery business.”