Zomato shares jumped on Wednesday after the food delivery startup said its board will meet on June 24 to consider an acquisition through issuance of equity. The Zomato stock rose by as much as Rs 2.5 or 3.7 percent to Rs 68.6 apiece on BSE, shrugging off the sea of red on Dalal Street.

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The Zomato board will "discuss a potential acquisition transaction, the consideration for which may be discharged through issuance of equity shares by way of a preferential issue", according to a regulatory filing late on Tuesday.

Moneycontrol had reported earlier citing sources that a deal between Zomato and Blinkit was likely in June. The value of the deal with quick commerce company Blinkit is is expected to come down from an earlier $700 million.

Zomato shares have relatively outperformed the market during the recent sell-off on Dalal Street, triggered by concerns about aggressive hikes in COVID-era interest rates and their impact on economic growth.

Globally, investors have been punishing tech and platform-based stocks bracing for a tighter interest rate regime ahead, as reflected in the Nasdaq Composite.

In December 2021, online grocery delivery platform Grofers rebranded itself as Blinkit in a move aimed at reflecting its pivot to quick commerce.

In January 2020, Zomato bought UberEats in a deal valued at around $206 million.

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