The Zomato scrip on Wednesday rebounded by over 5.50 per cent after its shareholders cleared the acquisition of Blinkit and a couple of foreign brokerages sounded optimistic about its future prospects. On the BSE, the Zomato scrip ended 5.52 per cent higher at Rs 43.95 after rising 6.60 per cent during intra-day trades to a high of Rs 44.40. Shares of the food delivery platform had plunged 23 per cent over the previous two sessions after the lock-in period for investors holding its shares prior to the initial public offering (IPO) ended on July 23.

The restaurant aggregator had come out with an IPO at a price band of Rs 72-76 per share last July. Since the offering, though the share rose to a high of Rs 169.10, it has come under pressure due to concerns over its road to profitability and elevated inflation that has affected discretionary spending.

However, on Wednesday the counter got a boost after the company reported that its shareholders have given the go-ahead for the acquisition of Blinkit. A regulatory filing by the firm showed that 97.19 percent of the shareholders gave their approval for the all-stock deal worth Rs 4,447 crore that was announced in June. Optimistic commentary from two foreign brokerages also helped. Credit Suisse maintained an out-performer rating on the company with a target price of Rs 90 per share. It said that Zomato is on a clear road to profitability growth. Analysts at Jefferies said that they have a ‘high conviction buy’ on the Zomato stock.