Zomato tumbles 14% in two days post Blinkit acquisition deal

Shares of Zomato extended their decline as they shed 7.5 per cent on Tuesday, to hit a low of Rs 61 per share on the BSE. The stock has declined 14 per cent in two days after it announced the acquisition of quick commerce firm Blinkit.

Over the weekend, the company announced acquisition of loss-incurring firm Blinkit for Rs 4,447 crore. The payment will be settled through issue of around 629 million Zomato shares (around 6.88 per cent equity dilution on fully diluted basis) at the prescribed preferential allotment price of Rs 70.76, and cash acquisition of Hands on Trades Pvt Ltd for Rs 60.7 crore.