Alipay likely to sell 3.4% stake in Zomato via block deal

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Alipay is likely to offload 3.4 percent stake in food delivery giant Zomato via a block deal, CNBC TV-18 reported on November 28, citing sources.

A total of 29.6 crore shares will be sold by Alipay, at a price of Rs 111.28 apiece, the sources added.

As per the news report, a 90-day lock-in on further dealing of shares would come into effect following the stake sale by Alipay.

Alipay is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group's founder Jack Ma.

In the July-September quarter, Zomato's net profit stood at Rs 36 crore, while revenue rose 71 percent to Rs 2,848 crore. This was a second consecutive quarter of net profit for the firm.

Zomato was in the news recently as reports emerged that the Directorate General of GST Intelligence (DGGI) issued a GST demand notice to the company for Rs 400 crore. The notice pertains to the alleged non-payment of GST on the delivery fees collected from consumers during the period from July 2017 to March 2023.

Over the past year, shares of Zomato have zoomed over 87 percent.

The food delivery platform hit 22-month high on November 6 on the back of its second quarter in profit, and its market cap surpassed Rs 1 lakh crore.

Nuvama Institutional Equities three weeks ago raised its price target for the stock by over 27 percent to Rs 140, saying the firm's revenue growth was much stronger than expected, as all businesses continued to grow at full throttle.

Meanwhile, in the trading session on November 28, Zomato's scrip settled at Rs 113.80 apiece on the BSE, which was 0.53 percent higher than the previous day's close.

This is a developing story. Please check back for updates