Zomato Freefall Extends to Day 4: Scrip Tanks Almost 25%, M-Cap Nosedives

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Zomato Freefall Extends to Day 4: Scrip Tanks Almost 25%, M-Cap Nosedives

By Malvika Gurung

Investing.com -- The online food delivery platform Zomato (NS: ZOMT ) continued its freefall for the fourth straight session on Thursday, slumping 4.62% to Rs 54.65. 

At the time of writing, its market capitalisation stood at Rs 43,029 crore, down 56.97% from its valuation of Rs 1 lakh crore at the time of listing on the stock exchanges in July 2021.

The new-age stock has tumbled nearly 25% in the four sessions starting Monday, after announcing that it will acquire the online quick commerce delivery company Blinkit in an all-stock deal for Rs 4,447.5 crore.

The stock has plummeted 69.3% from it's all-time high of Rs 169/share hit in Nov last year. 

Market experts are not very happy with the Zomato-Blinkit acquisition. 

This is because Blinkit is a loss-making company, same as Zomato and the market expects the acquisition deal to have an adverse effect on the food aggregator, and hurt its profitability scope. Credit Suisse (SIX: CSGN ) expects the deal to raise Zomato's EBITDA loss for FY23 and FY24.

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