New Delhi: BharatPe co-founder and former CEO Ashneer Grover on Tuesday (July 26) said that if Zomato merges with its only rival in the food delivery segment, Swiggy, instead of grocery delivery platform Blinkit, its shares will increase. The price would have been Rs 450. It’s important to note that Grover is also one of the co-founders of Grofers, an older brand name for BlinkIt.
“On the stock market – @letsblinkit served piping hot misery to @zomato in 10 mins! This is what would have happened if @swiggy had been merged to make ₹450 stock!!” Grover said in his tweet. (Also Read: Vivo’s Chinese Shareholders Used Fake Driving Licenses: ED To Delhi High Court)
in stock market- @letsblinkit piping served hot misery @zomato in 10 minutes ! hi if @swiggy Would have been merged to have a stock of ₹450!!
— Ashneer Grover (@Ashneer_Grover) 26 July 2022
His remarks come at a time when Zomato’s stock has lost up to 22% in the last two trading sessions. The recent fall in the share price comes in the backdrop of the lock-in period ending for pre-IPO investors. (Also Read: Beware Of Instant Loan App Fraud! State Bank Of India Shares 6 Safety Tips)
For around $568 million, Zomato bought Blinkit, claiming that rapid commerce is a logical progression from its food delivery business. On Tuesday, shares of the food delivery service hit a new low of Rs 43.05, plunging over Rs 89,000 crore. Even though Zomato stock had been declining for months, Grover said in May that buying the stock would not be a bad idea.
“It’s all about perspective. If you were a Zomato employee and exercised your ESOP (employee stock ownership) at Rs 140 or more after the IPO, you probably paid a higher cost per share as income tax. Which you can buy freely from the market today. The market is giving ESOP to all at Rs 56 per share.