On Wednesday, the stock reversed its downward trend and closed 5.5 percent higher.

According to filings available on the BSE, Zomato’s investors voted in favor of the company’s acquisition of quick commerce grocery company Blinkit (formerly Grofers) on Monday.

Approximately 97 percent of all voters supported Zomato’s acquisition of Blinkit (formerly Grofers) in an all-stock deal for 4,447 crores ($570 million). While 14.6 percent of public institutions voted against the agreement, 99 percent of public non-institutions did.

Zomato’s stock traded in the green after the approval was announced to the stock exchange on Wednesday morning, ending the session up 5.52 percent at Rs 43.95 per share. The stock price had plummeted in the previous two trading sessions, falling nearly 11% on Monday and 14% on Tuesday in intraday trading after the mandatory lock-in period for pre-IPO shareholders expired on Saturday.

In addition, according to a BSE disclosure, Zomato allotted 4.6 lakh equity shares from its Esop (employee stock option plan) pool on Tuesday at an exercise price of one rupee.

Last year, in July, the Gurugram-based company had a blockbuster listing on the Indian stock exchanges, and its shares more than doubled to an all-time high of Rs 169.10 on November 16, 2021. Since then, its stock price has dropped by nearly 70%.

Meanwhile, brokerage firm Jefferies remains bullish on the stock, believing that Zomato’s management has hastened its path to better unit economics. The stock has a target price of Rs 100, implying a 125 percent upside.

“Despite management guidance on a break-even in food delivery, investors are not giving many benefits of the doubt,” Jefferies wrote in a report. “The darkest part of the night is just before dawn.”