Zomato stake sale: Uber to drive out

Shares of food delivery giant, Zomato dropped as much as 10% during the early trade on Wednesday as part of which around nine percent stake changed hands in 32 trades.

Uber is the likely seller of a 7.8 per cent stake in Zomato being disposed of via a $373 million block deal.

The offer size of 612 million shares worth $373 million is based on the lower end of a price range of 48 rupees-54 rupees set for the block deal, according to a term sheet seen by Reuters.

According to reports, the offer price range for the deal to be carried out on Wednesday will be between ₹48-54 per share.

The decision to sell its stake in Zomato comes within a week after the one-year post-IPO lock-in on Zomato shares ended.

It can be noted that Uber picked up the stake in Zomato after the latter acquired its local food business Uber Eats in an all stock deal in 2020.