Chinese Group Alipay Said to Have Sold 3.4 Percent Stake in Zomato

Chinese language funds group Alipay plans to promote its 3.4 % stake in Indian meals supply big Zomato for practically $400 million (practically Rs. 3,333 crore) by way of block offers on Indian inventory exchanges, based on three sources and a Reuters assessment of the deal’s time period sheet.

Alipay, owned by Ant Group, will offload its whole 3.44 % stake within the deal, the time period sheet seen by Reuters confirmed.

Financial institution of America and Morgan Stanley are advisers on the deal, which is prone to be executed later this week on Indian exchanges, stated the three sources, who declined to be named because the plan is non-public.

Zomato, Financial institution of America and Morgan Stanley didn’t instantly reply to a request for remark. Alipay additionally didn’t reply exterior common enterprise hours.

Zomato shares have surged greater than 90 % this yr, after falling by greater than half in 2022 when tech shares struggled world wide. 

Alipay “needs to money out … the (market) timing is nice,” stated the primary supply, referring to the speedy rise in Zomato’s shares in current months.

The block offers are set to be executed at Rs. 111.28 per share, a 2.2 % low cost to Zomato’s shut on Tuesday, the time period sheet stated. 

In October, Japan’s SoftBank offered a 1.1 % stake in Zomato, which is India’s greatest meals supply service. Demand for on-line ordering has quickly grown lately, prompting corporations like Zomato to aggressively develop.

Alipay’s exit from Zomato comes as different Chinese language buyers have been paring their stakes in Indian corporations. In August, China’s Antfin offered a ten.3 % stake in Indian monetary big Paytm.

Tech shares akin to Zomato have staged a rebound after a drubbing final yr amid a market meltdown, when buyers additionally raised questions on sky-high valuations of some Indian startups that had made their inventory market debut lately.

© Thomson Reuters 2023