Zomato rejects new EY valuation report that lowered its stock price value

you rejected a new one evaluation report by EY board which lowered its stock market value for its acquisition of a fast-trading startup flashesaccording to the regulatory filing of the food delivery platform with the ESB.

Zomato bought Blinkit (formerly Grofers) for Rs 4,447 crore in an all-stock deal, which 97% of shareholders who voted approved on June 26.

Zomato shares were valued at Rs 70.76 in EY’s first report dated June 24.

EY’s latest report pegged Zomato’s share price at less than Rs 70.76. The company, however, did not disclose the new stock value.

Last month, the BSE and the National Stock Exchange asked Zomato to submit another report using a different valuation methodology, according to its regulatory filing.

“In accordance with discussions with the exchanges, and to comply with the request of the exchanges, we wish to state that the new report was submitted to the Board on August 4, 2022, and after evaluating the price of the equity shares from the original report and new report, the Board of Directors concluded that the fair market value per share of the company would remain unchanged at 70.76 rupees per share, being the issue price disclosed to shareholders in the notice,” the disclosure said. of BSE.

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Zomato addressed investor concerns about its Blinkit valuation in its latest quarterly report.

“We objectively evaluated all acquisition opportunities available in the fast trade space, and after focusing on Blinkit, we ensured that rigorous and detailed due diligence, deliberations and negotiations were carried out before to agree to the terms of the transaction (as any other company would for a large and important transaction),” Zomato CEO Deepinder Goyal wrote in a letter to shareholders filed with the BSE earlier this week.

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