Zomato Shares Surge 5% Amid Block Deal 

In early Monday trading, Zomato's share price surged by over 5% due to reports of a significant block deal involving the company's shares. The stock reached a high of ₹96.00 per share on the BSE, marking a robust 5.56% increase. Reports indicate that approximately 3.2 crore Zomato shares, valued at ₹288 crore, were traded in a block deal at ₹90.10 per share. Notably, the identities of the buyers and sellers in this transaction remain undisclosed. The speculation stemmed from Japan's SoftBank, which was anticipated to sell Zomato shares following the conclusion of the lock-in period resulting from the Blinkit deal, which ended on August 25.

Over 15.24 crore shares, valued at ₹1,388.81 crore, changed hands on the BSE. Similarly, more than 4.62 crore shares, amounting to ₹431.30 crore, were traded on the National Stock Exchange (NSE) during the same time frame.

Zomato Acquired Blinkit

In August 2022, Zomato successfully finalized the acquisition of Blinkit, a quick commerce company previously known as Grofers, along with its warehousing and related services business. Zomato formally unveiled this acquisition in June 2022 following approval from its board. The Blinkit deal saw SoftBank acquiring a 3.35% stake in Zomato. This acquisition was structured such that Zomato issued fresh equity shares to Blinkit's selling shareholders at an implied value of ₹70.76 per share.

The 12-month lock-in period, which followed the Blinkit deal, concluded on August 25. As a result, SoftBank's shares in Zomato became available for trading on August 28. It's worth noting that other significant investors in Zomato, including Tiger Global and Sequoia, also hold substantial stakes in the company.

Market Performance & Platform Fee Increase

Zomato's share price has displayed impressive growth, with a gain of more than 50% this year. 
Zomato achieved profitability for the first time during the June 2023 quarter. The company reported a consolidated profit after tax of ₹2 crores, marking a significant turnaround from the ₹186 crore loss in the same period the previous year. Furthermore, Zomato's revenue from operations witnessed a remarkable year-on-year growth of 71%, reaching ₹2,416 crore in Q1FY24, up from ₹ 1,414 crore in the corresponding period the prior year.

In other recent developments, Zomato has introduced a platform fee of ₹ 2 per order for select users, with some tier-II cities witnessing an increase to ₹3 per order. This change also impacts Zomato Gold subscribers, who were previously exempt from such fees.

Global brokerage firm Morgan Stanley maintains an 'overweight' rating on Zomato, with a target share price of ₹115. According to the firm, Zomato's platform fee strategy has the potential to drive improvements in profitability.