Zomato rejects EY’s new valuation report that lowered its share price

rejected a new valuation report from consultancy EY that lowered the value of its share price for the acquisition of the fast trading startup Blinkit, according to the regulatory filing of the food delivery platform at BSE.

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

Zomato’s stock was valued at Rs 70.76 in the first EY report dated June 24th.

EY’s latest report rated Zomato’s share price as less than Rs 70.76. The company, however, did not disclose the new value of the shares.

Last month, BSE and the national stock exchange asked Zomato to submit another report using a different valuation methodology, as its regulatory filing showed.

“Following discussions with the exchange, and to comply with the exchange request, we inform you that the new report was filed with the Board on August 4, 2022, and after evaluating the price of the shares from the original report and the new report , the board concluded that the company’s fair market value per share would remain unchanged at Rs 70.76 per share, which is the issue price communicated to shareholders in the notice, “the disclosure on BSE showed.

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

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

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