Zomato shares close on a flat note after falling sharply in early trade

Shares of Zomato ended flat on Wednesday after falling sharply in morning trade amid reports that ride-hailing app Uber is selling its entire holding in the food delivery company.

In morning trade, the stock had slumped 9.62 per cent to Rs 50.25 on the BSE. Later, it recovered most of the lost ground and ended at Rs 55.40 apiece, lower by 0.36 per cent.

On the NSE, it settled at Rs 55.40 apiece, a decline of 0.27 per cent after falling 6.84 per cent to Rs 51.75 in early trade.

Uber is selling its entire holding in Indian food delivery company Zomato for at least USD 373 million (about Rs 2,939 crore) through a block deal of shares, merchant banking sources said on Tuesday.

The sources said the offer price range for the deal to be carried out on Wednesday will be between Rs 48-54 per share.

At the lower end of the band, which is a 13.6 per cent discount to Tuesday's close, the total money to be raised through the sale comes at Rs 2,939 crore, sources said.

Shares of Zomato on Tuesday had jumped nearly 20 per cent to Rs 55.60 on the BSE.