Shares of Eternal Limited, formerly known as Zomato, declined 1.45% to Rs 228.24 in early trade on April 21, 2025, following the company’s decision to cap foreign ownership at 49.5%. The stock opened at Rs 229 and moved in a range between Rs 227.10 and Rs 230.53. At the current price, the company’s market capitalization stands at approximately Rs 2,10,128 crore, down from Rs 2,11,661 crore in the previous session—a market cap loss of nearly Rs 1,533 crore in early hours.
The drop comes after Eternal’s Board of Directors, in a meeting held on April 18, approved a proposal to limit foreign shareholding to 49.5% on a fully diluted basis. This cap includes all foreign investments—FDI, FPI, and others—except those under the non-repatriation route. The proposal is now subject to shareholder approval via postal ballot.
This move is aimed at aligning with regulatory frameworks under FEMA, where companies impose such caps to comply with sectoral limits or safeguard ownership structures.
Eternal has already informed the stock exchanges of its plan and will begin dispatching ballot notices to shareholders. While the long-term impact on the company’s governance and investor base remains to be seen, the market reacted cautiously to the announcement.
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