Ashneer Grover feels Zomato shares would be Rs 450 if…: His hypothetical situation gets mixed reactions

BharatPe co-founder and former CEO Ashneer Grover said that if Zomato had merged with Swiggy, instead of Blinkit, its share price would have been Rs 450.

New Delhi: BharatPe co-founder and former CEO Ashneer Grover, on Tuesday (July 26), said that if Zomato had merged with its only rival in the food delivery segment, Swiggy, instead of the grocery delivery platform, Blinkit, its share price would have been Rs 450. It is important to note that Grover is also one of the co-founders of Grofers, the old brand name for BlinkIt.

“On the stock market -  @letsblinkit served piping hot misery to @zomato in 10 minutes ! Yeh hi agar  @Swiggy ko merge kar liya hota to ₹450 ka stock hota !!” Grover said in his tweet.

On the stock market - @letsblinkit served piping hot misery to @zomato in 10 minutes ! Yeh hi agar @Swiggy ko merge kar liya hota to ₹450 ka stock hota !! — Ashneer Grover (@Ashneer_Grover) July 26, 2022

His comments come at a time when Zomato’s stock appears to be on a free fall, plummeting as much as 22% in the last two trading sessions. The recent drop in the share price has come in the backdrop of a lock-in period ending for pre-IPO investors. 

For around $568 million, Zomato purchased Blinkit, claiming that rapid commerce is a logical progression from its food delivery business. On Tuesday, the shares of the meal delivery service hit a fresh low of Rs 43.05, losing more than Rs 89,000 crore. Even though Zomato's stock had been declining for months, Grover had stated in May that purchasing shares wouldn't 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 higher post IPO, you probably paid more cost per share as Income Tax, than what you can buy today from the market freely. At Rs 56 per share price, markets are giving everyone ESOPs," he had tweeted.