Leading online food delivery platform Zomato has dissolved its step-down subsidiary Zomato Ireland Ltd - Jordan (Zomato Jordan) with effect from March 12, 2023. The liquidation of the Jordan-based unit will not have any material impact as its contribution to the turnover and overall net worth of the parent company was nil, Zomato said in a filing to the stock exchanges.

Share Market Live

NSE

Zomato Jordan did not have any active business operations and its networth was Rs 52 lakh, the company informed the bourses. Zomato shares declined nearly two percent to hit a low of Rs 49.88 in early trade on Thursday before recovering some ground later.

The stock has declined around 37 percent in the past year and is around 42 percent down from its 52-week high level hit on March 31, 2022, as tech shares took a beating.

Also Read: Zomato shares may gain up to 50% in its pursuit of more loyal customers, say analysts

Analysts, however, last month said that they expected up to 50 percent upside in Zomato stock price with the food tech platform shifting its focus to growth.

Zomato reported a widening of net loss to Rs 346.60 crore for the December quarter of FY23 against a loss of Rs 63 crore in the year-ago period and of Rs 250.80 crore in the September quarter of FY23.

Its revenue from operations rose 75.20 per cent to Rs 1,948 crore in the third quarter of FY23.The company witnessed an industry-wide slowdown in the food delivery business since late October 2022. The company last month told analysts that it was focused on long-term growth vectors without worrying too much about near-term growth pressures.

The company re-launched its membership program, Zomato Gold, in late January that offers on time delivery guarantee. The Zomato Gold program has scaled to 900,000 members.