Zomato Limited rose 1.12% in the early morning trade after it said that it had begun the procedure to liquidate its Portugal-based wholly-owned subsidiary.

Zomato Media Portugal was not a material subsidiary, and its liquidation would not affect the revenue of Zomato Limited, the food aggregator said in an after-market-hour filing. The company did not stipulate the motive for liquidating the subsidiary, which does not have energetic business operations.

Zomato shares were trading at Rs 81.60 on the NSE, up 1.62% from the previous close. The share has gained 33% this year.

Since January 1, Zomato has introduced liquidation proceedings for five subsidiaries and de-registered one. The subsidiaries were based in Indonesia, New Zealand, Australia, Jordan, and Portugal. It mentioned that the liquidation would not affect the revenues of Zomato Limited.

Brokerage Motilal Oswal has a “buy” rating with a target price of Rs 80. The domestic brokerage firm sees a 24% upside in the stock.

With a dominant market share and robust growth in the food delivery business and Hyperpure, Zomato might report a substantial 36% revenue CAGR over FY23-25.

Hyperpure is business to the business dais for kitchen supplies to hotels, restaurants, and caterers.

Zomato’s revenue for FY23 augmented 65% to Rs 7760 crore. The food aggregator’s net loss lessened by 19% to Rs 971 crore in FY23 from the previous year. Earnings Before Income Tax Depreciation and Amortisation (EBIDTA) fell 2212 bps to 6.81% in the same period.