Zomato ​Investors Tell Sebi, Unhappy With Delayed Blinkit Disclosure

Zomato shares have fallen 20 per cent since the deal was announced on June 24 after market hours

A group of wealthy investors based in Mumbai have complained to the Securities and Exchange Board of India (Sebi) that the food delivery company failed to disclose its purchase of Blinkit to the stock exchanges on time, people with knowledge have said. direct knowledge of the matter. Zomato informed the stock exchanges on June 24 that its board had approved the acquisition of Blinkit for Rs 4,447 crore. Investors said they suffered losses due to the delay and that timely disclosure would have helped them better prepare.

The investors said in a June 29 letter to Sebi’s chairman that news of the potential acquisition had been reported in the press and was circulating on social media for more than a month before the deal was announced. But Zomato, they alleged, neither confirmed nor denied the reports. Zomato shares have fallen 20 per cent since the deal was announced on June 24 after market hours.

The company said the disclosure was timely, in accordance with the rules.

Sebi standards require listed companies to promptly disclose any price-sensitive information. However, company boards have the freedom to decide whether a development is price-sensitive information and, if so, when it should be disclosed.

These investors alleged that the company had not commented on the deal. However, some of the savviest investors adjusted their exposure to Zomato just as the social media chatter started rolling in, a person with knowledge of the matter said. They also cited a recent Sebi order where a blue chip company and its employees were penalized for similar violations.

Tags assigned to this article:

Around The World