Eternal Block Deal: Undisclosed Investor To Offload Stake Worth Rs 1,500 Crore

Zomato parent firm Eternal Ltd. will see a 0.5% of its stake offloaded by an undisclosed institutional investor in a block deal worth up to Rs 1,500 crore, sources told NDTV Profit.

The shares will be offloaded for an offer price of Rs 289.5 per share. The offer price for the block deal will be at 1% from the current market price.

This sale will take place amid other competitors like Amazon Now and Zepto and Swiggy making moves in the quick-commerce industry.

Zepto is set to raise $300 million from domestic investors and Swiggy vying to raise $1.1 billion or Rs 10,000 crore via a qualified institutional placement.

India will see the rollout of global e-commerce giant Amazon's Amazon Now service, which offers fast delivery for groceries and other essential products required for daily use.

With its expansion into Tier-1 metro cities such as Bengaluru, Mumbai and Delhi, Eternal's quick commerce brand Blinkit may see stiff competition from this new entrant.

Amazon Now also offers same-day delivery for one million products and next-day delivery for four million more.

Brokerage Macquarie maintained 'underperform' ratings on both Eternal and Swiggy on Dec. 4. The brokerage set a target price of Rs 200 on Eternal, implying a 33% downside, and Rs 285 on Swiggy, noting a potential 28.6% downside.

Amazon Now’s pricing model is designed to attract high-frequency users, according to the brokerage.

The service charges no handling fees, offers free delivery on orders above Rs 99, and provides cashback of Rs 50, Rs 100, and Rs 200 on order values above Rs 399, Rs 749, and Rs 1,399, respectively.

Shares of Eternal Ltd. ended 1.35% lower at 292.40 apiece on the NSE, compared to a 0.59% rise in the benchmark Nifty.