Tiger Global nearly halved its stake in food delivery firm Zomato Limited., along with investors like Uber Inc. and Moore Strategic Ventures which have either left or cut their stakes following a year-long lock-in period for some shareholders expired on the 23rd of July.
The hedge fund with its headquarters in New York has sold more than 184 millions shares which is 2.34 percent in Zomato between the 25th of July and 2nd of August on the market, it stated in an exchange filing on Thursday. Following the sale, Tiger Global now holds a 2.77 percent share in Zomato, as the document indicates.
The filing didn't provide the sales proceeds Tiger received, based upon Zomato's average closing price of Rs46.8 per share between July 25 between 2 August and 25 July, Tiger Global is expected to have sold stock of Rs 863.2 crore, which is roughly $109 million.
The food aggregator has experienced an upswing in selling from investors who were pre-IPO after the 12 month lock-in period came to an end this month. The 3rd of August was the day that Uber is the second largest investor in Zomato has sold its entirety 7.78 percent stake in block sales to Rs3,087.9 crore. The US ride-sharing company sold its shares for a price that was Rs50.44 in Fidelity, and ICICI Prudential Life Insurance. Ltd.
On the 26th of July, Moore Strategic Ventures Llp has sold its entirety of its Zomato holding at Rs187.1 crore. Moore was able to sell its shares at just Rs44 each. Investors who have traded Zomato shares after the lock-in period of 12 months could be impacted by the potential earnings they could have earned by trading in Zomato stocks due to the price decline Zomato has suffered in recent months because of the risk-averse investor outlook for tech stocks across the globe.
Zomato was able to sell shares during its IPO at Rs76 per share in July of last year, then reach a record highest price that was Rs169/share in the month of November.
As Moore Strategic Ventures sold its shares for the loss of Rs4 crore as per an analysis, Uber sold its stake in the company for the benefit of. According to Mint's analysis Zomato's prospectus for its initial public offering shares were distributed the company Uber at a cost of Rs22.47 each.In the instance of Tiger Global, shares were distributed at two price points that were Rs44.81 and Rs58.20 at the close of 2020 and in the early 2021. Zomato's IPO prospectus indicates.