Zomato to acquire Blinkit for Rs 4,447 crore in all-stock deal; stock tumbles ~5%

27 Jun 2022 , 10:23 AM

Food Delivery Giant, Zomato Limited announced the acquisition of Blinkit (formerly Grofers), in an all-stock deal worth Rs4,447 crore on Friday.

Zomato said it would buy up to 33,018 equity shares in Blink Commerce Pvt Ltd from its shareholders for a total consideration of Rs4,447.48 crore, or Rs13.45 lakh per equity share. The decision was made today at a board meeting.

“This acquisition is consistent with our investment strategy in the quick commerce business,” stated the company in media reports.

Zomato stated that the transaction would be carried out through the issuance and allotment of up to 62.85 crore fully paid-up equity shares of Zomato, each with a face value of Rs1 and a price of Rs70.76. Zomato currently owns one equity share and 3,248 preference shares in the online fast commerce startup.

Last year, Zomato acquired a 10% stake in Blinkit for an aggregate amount of about $100 million.

At around 10.28 AM, Zomato was trading at Rs66.95 down by Rs3.4 or 4.83% from its previous closing of Rs70.35 on the BSE. The scrip opened at Rs73 and has touched intraday high and low of Rs73 and Rs66.50 respectively.