Not long after the end of a one-year lock-up on pre-IPO investors, Uber sold its 7.8% stake in Zomato. Zomato is an Indian food delivery company. This is one of many high-profile sell-downs following last year’s spate of Indian technology listings, said IFR Asia. The trigger was due to the positive quarterly earnings from Zomato’s rally for as much as 20% of the share price. The company finally purchased its 612m shares at Rs50.44 in order to increase Rs31bn. Uber got the exchange of equity for as much as Rs13.8bn.
The price receives a quite large discount in the block which is 9.2% to the pre-deal of Rs55.55. Based on the people close to the deal, this is to encourage the success of the deal. 50 accounts participate in the books. Moreover, the shares are going to the cornerstone investors. These accounts are equally representing both domestic and foreign accounts. Then, two companies like ICICI Prudential Life Insurance and Fidelity Investment purchased 54m and 45m shares. The only bookrunner was Bank of America. So far, at least three cornerstone investors have sold shares in Zomato.
Moreover, Moore Strategic Ventures also disposed of 42.5m of their shares on the market. Meanwhile, Tiger Global’s Internet Fund VI eradicate cuts its stake from 5.11% to 2.77%. The one conducting the bookbuilding is only Uber. However, bankers hope that this sales scenario should also follow other Zomato investors. The epitomes are Info Edge (15.2%), Alipay Singapore (7.26%), Antfin Singapore (7.15%), Sequoia Capital (6.2%), and more.
Analyst argues that all of those are waiting for a window to present profits from the respective shareholders. Hence, Uber purchased the shares when there are increases for as much as 20%. Zomato’s stock in this case may increase for as much as 53% or more than Rs76 issue price on the debut year. An ECM banker not in the deal said that the shareholders have spoiled the party during the financial turnaround.
