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Info Edge India share price rallied 6 percent intraday Monday after Zomato signed agreement for fund raising from Alibaba.
Global brokerage house Morgan Stanley has Overweight call on the stock with a target price of Rs 1,900 (implying 28 percent potential upside), saying Alibaba's stake in Zomato is expected to go up to over 27 percent after this investment.
"Zomato has signed a definitive agreement to undertake a primary fund raise of approximately $210 million from Alipay Singapore Holding Pte Ltd (which is an existing shareholder of Zomato) and/or any of its affiliates," Info Edge said in its filing.
Upon the closing of this fund raise, the internet company said its shareholding in Zomato stands reduced to about 27.68 percent on fully converted & diluted basis.
The internet company owned about 30.91 percent of the share capital of Zomato Media Private Limited (Zomato) on fully converted & diluted basis as of March 2018.
Info Edge owns Naukri.com, Jeevansathi.com and 99acres.com while Zomato provides restaurant search and discovery service.
At 10:10 hours IST, the stock price was quoting at Rs 1,533.50, up Rs 47.65, or 3.21 percent on the BSE.
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