Zomato shares edge higher after management denies Shiprocket acquisition report; here's what Jefferies suggests

Zomato share price NSE, Zomato share price target, Zomato news today: Shares of Zomato on Friday edged higher on D-Street after the food-services aggregator denied news report circulating in the mainstream media regarding Zomato offering to acquire Shiprocket for $2 billion through a regulatory filing on the exchanges. The company added that it is focused on existing businesses with no plans for any acquisition at this moment. 

Zomato shares rose as much as 2.7 per cent to hits the day's high of Rs 130.8, coming within Rs 0.95 to its 52-week high touched on December 19, 2023 on NSE in early morning deals. The counter closed at Rs 127.9, up by Rs 0.43 or 0.55 per cent on NSE.

In its statement Zomato further said, "Kindly note that the Company does not comment on media speculation but is clarifying this information out of abundant caution, given the large size of the deal mentioned in the news article and the uncertainty that it may create in the market."

Bloomberg earlier reported that Zomato has made an offer to acquire closely held e-commerce shipping startup Shiprocket, according to people with knowledge of the matter.

Zomato share price target: Here's what Jefferies say

Jefferies has iterated a 'buy' call on Zomato with  a  target of Rs 165. Post the news which now has been denied, the global brokerage said," If confirmed, the shares could trade weak as prime facie, this seems unrelated M&A although QC & Hyper pure may have some linkages."

"We ascribe low probability of a deal at this stage as management hands are full. Quick commerce still in ramp-up phase while balancing growth & margin is a key focus in food delivery," Jefferies further said.

For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.