Zomato shares fall as 612 million shares are offered for sale at a discount

Shares of India’s Zomato Ltd fell as an undisclosed shareholder offered to sell 612 million shares at a discount, a stake matching that held by Uber Technologies.

Zomato fell 9.5% in Mumbai shortly after it opened on Wednesday, before narrowing the decline to 1.6% at Rs 54.65 as of 9:55 a.m. local time.

The selling shareholder in block trading has offered the stock between Rs 48 and Rs 54 apiece, under the terms of the deal seen by Bloomberg News on Tuesday evening. The discount to the last closing price was as wide as 13.6%. BofA Securities is the sole bookrunner for the block transaction.

Trade standard reported Tuesday that Uber is the holder disbursing the shares. Uber owns 612.2 million shares of Zomato, according to data compiled by Bloomberg.

ALSO READ: Uber set to leave Zomato on Wednesday; puts the entire 7.8% stake on the block

Zomato raised $1.3 billion with its offering about a year ago, paving the way for a slew of Indian startups to lure investors with the first stock sale in the South Asian country. Shares of the Indian online food delivery platform plunged last week after a lock-up period for investors in the company expired ahead of the bid.

Pre-IPO investors in the New Delhi-based company include China-based Ant Group Co., Info Edge India, Uber Technologies Inc. and Sequoia Capital.

Shares of Zomato jumped 20% on Tuesday, the most since the first session last year, as a number of block trades changed hands following the release of its quarterly performance report. The result showed a loss and revenue below expectations, in line with analysts’ expectations.

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