November 26, 2022

Uber Zomato block deal – Should you buy the share?

In Jan 2020, The well-known online food delivery platform Zomato acquired Ubers Eats India , in a deal uber got 10% of stake in the online platform provider. Now with the Uber Zomato block deal, Uber technologies is likely to sell 7.8% of the stake that it received from Zomato.

According to a term sheet issued by BofA Securities, This block deal will help Uber raise around Rs 3,300 crore, according to a term sheet issued by BofA Securities. However with the sale fixed around at Rs48 – Rs54 likely at a lower end it may fetch around Rs.3000 crores.

So now, should you buy or sell Zomato shares? Let’s look at it. Zomato on Monday said its net loss in Q1 has almost come down by 50% due to higher income. With this and based on its previous performances, few brokerages have maintained a “Buy” rating. Today 3rd August, the trading session of Zomato Share Price opened at Rs.52.75 and closed at Rs.55.40. So we do expect the price per share for Zomato may go up to Rs 82 in a medium term depending on the market scenario.

Now the choice is yours to decide whether to buy or not. However we suggest you study the reports from top stock brokers and before making the decision.

Also Refer: Money Control, Economic Times and other major stock market brokerages