In a latest release, Zomato online food delivery platform on August 5, said that its board has rejected EY’s latest valuation report that hauled down its share prices for earning quick commerce firm Blinkit.

Zomato rejects valuation report by EY:

According to a story published by Mint, Zomato board has come to a conclusion to keep the preferential price at Rs. 70.76, as pegged by EY earlier. Nevertheless, Zomato has not yet revealed the revised lower share price pegged by EY. According to the original report of EY, the share price at ₹70.76 apiece, is in absolute and complete compliance with all provisions of applicable laws. It further added that the company had gained a new report from EY following a specific request from stock exchanges - National Stock Exchange of India (NSE) and BSE Ltd.

Further reading:

Sources also say that in June, Zomato agreed to obtain Blinkit for Rs. 4,447 crore in an all-stock deal. The deal has received shareholders‘ approval and is awaiting regulatory inclinations. In the recent days, the shares of Zomato moved under significant sell-off pressure as the one-year lock-in period for internal investors holding around 613 crore shares or 78% of Zomato’s shares ended on July 23.

The pre-IPO investor Moore Strategic Ventures sold its entire stake, marking a loss on its over one year-old bet last week. On August 3, Uber, the second biggest shareholder of Zomato, sold its entire 7.78% stake in through block deals for ₹3,088 crore. The US ride- sharing firm sold its shares at a price of ₹50.44 to Fidelity and ICICI Prudential Life Insurance Co Ltd.

Investment by US Company:

Moreover, an investment firm from US named Tiger Goobal stated that it sold over 184 million Zomato shares, or 2.34% stake, between 25 July and 2 August in the open market. At present, after the sale the firm holds a 2.77% stake in the company.

It is to be noted that during the month of June, Zomato net loss constricted to Rs. 186 crore as compared to Rs. 359 crore during the same time frame as noted in 2021. The food delivery platform focused on expediency in between a narrow erosion in its share price.

What is EY?

Ernst & Young Global Limited, trade name EY, is a multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and PricewaterhouseCoopers, it is considered one of the Big Four accounting firms.

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