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    Zomato keeps preferential price unchanged in pursuit of Blinkit despite lower valuation from EY

    Zomato keeps preferential price unchanged in pursuit of Blinkit despite lower valuation from EY

    Zomato keeps preferential price unchanged in pursuit of Blinkit despite lower valuation from EY
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    By CNBCTV18.com  IST (Published)

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    In its first valuation report, EY had priced Zomato at Rs 70.76 per share but the company obtained a second valuation after a specific request from exchanges. 

    Zomato has kept its preferential price unchanged at Rs 70.76 per share for its Blinkit acquisition despite EY valuing it lower in the second round of evaluation.
    On June 24, Zomato’s board gave its go-ahead for the Deepinder Goyal-led company to acquire the e-grocery startup Blinkit (formerly Grofers), which was founded by his long-time friend and former ‘Zoman’ Albinder Dhindsa.
    In its first valuation report, EY had priced Zomato at Rs 70.76 per share, but the company obtained a second valuation after a specific request from exchanges.
    EY's second valuation report used different valuation methodologies and determined that the fair value was lower.
    The food delivery company's stock has shot up over 23 percent in the past five trading sessions but is still down over 50 percent from its listing price.
    In an all-stock deal, Zomato wants to swap shares with Blinkit, valuing the grocery delivery platform at $568 million. Zomato has cut Blinkit’s valuation nearly in half since turning the e-grocer into a unicorn in a $120 million funding round co-led with Tiger Global last August.
    Zomato on Thursday said investment firm Tiger Global had reduced its stake in the company by almost half to 2.77 percent by selling over 18.45 crore shares in the open market. Tiger Global's Internet Fund VI Pte Ltd had a holding of 5.11 percent in the online food delivery platform before the sale.
    A day earlier, Ride-hailing app Uber offloaded 61.2 crore shares for Rs 3,088 crore through an open market transaction. According to bulk deal data available with BSE, Uber BV sold 61,21,99,100 shares, amounting to a 7.8 percent stake in the company.
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