Eternal Limited caps foreign ownership at 49.5%, seeks shareholder approval

Zomato

Eternal Limited, previously known as Zomato Limited, has announced that its board of directors approved a proposal to limit total foreign ownership of the company's equity instruments to 49.5% on a fully diluted basis.

This decision was made during a board meeting on April 18, 2025, and is subject to shareholder approval through a special resolution via postal ballot, in accordance with the regulations set by the Securities and Exchange Board of India (SEBI).

This cap applies to all forms of foreign investment, including Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and indirect foreign investments from non-resident Indians (NRIs), as well as foreign-owned or controlled Indian entities and other investment vehicles.

It covers equity instruments as defined under the Foreign Exchange Management Act (FEMA), such as equity shares and compulsorily convertible preference shares or debentures, acquired through primary or secondary markets, excluding those through the non-repatriation route.

The purpose of this strategic move is to comply with regulations while supporting Eternal's growth objectives, particularly in its quick commerce ventures, including expansion plans for Blinkit and ambitions to achieve Inventory Ownership Category Company (IOCC) status. The decision adheres to SEBI's Listing Obligations and Disclosure Requirements Regulations from 2015 and aligns with the SEBI master circular dated November 11, 2024.

To move forward, Eternal will issue a postal ballot notice to its shareholders and notify the stock exchanges, seeking approval for the proposed foreign ownership cap. The company emphasizes that this resolution is vital for maintaining strategic control while fostering growth in India's competitive market.