Shares of Eternal (formerly Zomato) slipped as much as 4.4 per cent during early trade on May 26 as global index providers MSCI and FTSE Russel plan to trim Eternal’s weight in their indices, citing a reduction in the Foreign Ownership Limit (FOL).
The move is expected to trigger passive outflows of nearly $840 million, according to estimates by IIFL Capital Services. Of this, FTSE Russell’s adjustment could lead to outflows of around $380 million, while MSCI’s scheduled May review may result in another $460 million being pulled out.
The revisions come after FTSE slashed Eternal’s investability weighting in the FTSE All-World Index from 82.74 per cent to 49.5 per cent. Such a cut requires index providers to adjust the stock’s weight to reflect the reduced foreign investable portion.
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FTSE’s revised weightings will come into effect at the start of trading on Wednesday, May 28, while MSCI’s adjustments are expected shortly after as part of its upcoming index review.
Currently, Eternal shares are a constituent of FTSE MPF All World Index, FTSE Global Large Cap Index and FTSE Emerging Index. It is also part of MSCI India Index.
Eternal Share Price History
As of 12:41 PM, Eternal shares traded at Rs 227.16 apiece on the NSE, down 4.37 per cent against their previous close. During the session, the stock touched an intraday low of Rs 227.10 per share.
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On a year-to-date (YTD) basis, Eternal shares have yielded a negative return of 18 per cent and over a year, they delivered a return of over 24 per cent. Over the past three years, the stock has rallied 276 per cent.
DIIs Increasing Stakes In Eternal
According to the shareholding pattern of Eternal on the NSE, the stock has seen domestic institutional investors’ (DIIs) holdings increase over the past years. DIIs have nearly tripled their holding in the company to 23.55 per cent, as of March 31, 2025, from 8.03 per cent in March 31, 2023.
Meanwhile, foreign institutional investors (FIIs) have continued to reduce their stakes in the company. As of March 31, 2025, FIIs held 44.36 per cent. Earlier on March 31, 2024, FIIs held 55.11 per cent.
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Eternal Q4 FY25 Results
In Q4 FY25, Eternal reported a decline of 78 per cent year-on-year (YoY) in net profit to Rs 39 crore. Revenue from operations, however, grew 64 per cent YoY to Rs 5,833 crore.
