Shares of Zomato tanked nearly 10 % in morning trade on Wednesday amid reports that ride-hailing app Uber is selling off its entire holding in the food delivery company.

The stock slumped 9.62 per cent to Rs 50.25 on the BSE. Later, it recovered most of the lost ground and was trading lower by 2.16 per cent at Rs 54.40.

At the NSE, it fell 6.84 per cent to Rs 51.75 in early deals. The stock was quoting 1.89 per cent lower at Rs 54.50 later.

Uber is selling off its entire holding in Indian food delivery company Zomato for at least USD 373 million (Rs 2,939 crore) through a block deal of shares, merchant banking sources said on Tuesday.

The sources said the offer price range for the deal to be carried out on Wednesday will be between Rs 48-54 per share.

At the lower end of the band, which is a 13.6 per cent discount to Tuesday’s close, the total money to be raised through the sale comes at Rs 2,939 crore (USD 373 million), sources said.

Shares of Zomato on Tuesday had jumped nearly 20 per cent to settle at Rs 55.60 on the BSE.