Zomato has been courting controversies for one or another reason of late. After reportedly denying retail investors access to its con call, the food aggregator company has been accused of not informing about Zomato-Blinkit deal to investors on time. Apparently, some big investors of Zomato also alleged that select investors were in know of the matter.  

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They claimed that select investors, who were informed about the deal, were saved from timely information, while they incurred huge losses due to lack of transparency concerning the deal.  

Usually in cases like this, it has been seen that companies generally claim that they do not share information on a deal until the board of the firm concerned finalizes it in its meeting. On its defence, Zomato has come up with similar explanation stating that it has complied with all norms. 

Earlier, Zomato made news when it decided to keep retail investors out from its investors’ call on June 25.  

Watch Full report on 'Zomato-Blinkit Deal controversy' here:

Raising the issue, Zee Business Managing Editor had said that usual practice for companies such as Zomato is that they engage with fund managers, analysts who track their stocks, to apprise them of their plans and decisions while ignoring the retail investors. 

He also questioned the delays made by companies in informing retail investors and also the information not being shared with them in entirety. 

He said that it is still okay that the media organizations are not allowed during the analyst calls as they may raise some uncomfortable questions with the companies.  

"It is also understandable that it will be impossible for the companies to answer questions of all the investors. But the least that companies must do is to allow retail investors to attend these investor calls. It should be open for all the investors, be it retail or institutional," Singhvi had said. 

Meanwhile, the shares have significantly corrected from levels of RS 70 to Rs 54 during Monday's intraday trade.  

After dropping by nearly three per cent in the early trade, the stock was trading at Rs 55 per share on the BSE.  

Earlier, Zomato's board had approved the acquisition of quick commerce start-up Blinkit in an all-stock deal for Rs 4,447 crore.  

As per the deal, Zomato will issue up to 629 million shares, amounting to an equity stake of 6.88% on a fully-diluted basis, at an allotment price of ₹70.76 per share, the food aggregator firm had said in an exchange filing.  

Since the deal announcement, brokerages and analyst were divided on the stock. They believed the acquisition may hurt the price movement of the stock in the short-term, however, it will help Zomato in the long run.