Bank of America Arm Acquires 82 Lakh Shares of Zomato Parent Eternal in Rs 267 Crore Market Deal
Bank of America’s investment banking division, BofA Securities Europe SA, has acquired 82 lakh shares in Eternal, the parent company of food delivery major Zomato, through a significant open market transaction on October 1. The deal, valued at nearly Rs 267 crore, reflects rising investor confidence in India’s internet economy and Eternal’s growth outlook.
The acquisition was made at a price of Rs 325.5 per share, bringing BofA’s holding to 0.08% of the company. The shares were purchased from Goldman Sachs Bank Europe SE, which offloaded its stake through the same market route.
Stock Rises on Back of Momentum
Eternal’s stock responded positively to the development, rising more than 1% during the trading session to close at Rs 329.45 on the National Stock Exchange (NSE). This continues an upward trend that began earlier this year, with the stock surpassing its previous record high of Rs 305 in July.
The company’s consistent stock performance has been attracting attention from institutional investors, particularly as Zomato — its flagship entity — improves its path to profitability while expanding its offerings in food delivery, hyperlocal services, and logistics.
Eternal: The Holding Power Behind Zomato
While Zomato remains the most prominent name under Eternal’s umbrella, the holding company structure also reflects an ongoing evolution in India’s tech landscape. Eternal is increasingly being viewed not just as a food delivery brand but as a larger internet ecosystem player with investments and verticals in quick commerce (Blinkit), logistics, dining-out platforms, and more.
This market transaction by BofA signals growing interest in the long-term potential of platform companies like Eternal, especially those that have begun demonstrating operating leverage, revenue growth, and reduced cash burn.
Follows Pattern of Large Deals in 2023
The latest purchase is one of several high-value trades involving Eternal’s shares in 2023. Just two months earlier in August, BNP Paribas picked up Eternal shares worth Rs 3,220 crore — one of the largest equity transactions involving an Indian internet firm this year. The French banking major rebalanced its portfolio by increasing exposure to Eternal while reducing stake in Swiggy, one of Zomato’s key rivals in the food delivery space.
That same month, Chinese e-commerce giant Alibaba Group’s affiliate Antfin sold Eternal shares worth Rs 4,097 crore, marking a major exit from the Indian internet sector. It was Antfin’s second divestment from a major Indian tech firm within a week, following its stake sale in fintech giant Paytm.
These strategic exits and new investments are seen as a broader shift in institutional ownership, with Western financial institutions gaining exposure to Indian digital companies, while some Asian investors — particularly from China — reduce their footprint.
Strategic Interests Behind the Stake Acquisitions
While the 0.08% stake bought by BofA may appear modest, it signals strategic interest in Eternal’s long-term trajectory. Analysts say that institutional investors such as BofA and BNP Paribas are betting on the consolidation and maturity of India’s food delivery and quick commerce markets.
Zomato’s transition from high-cash-burn operations to near-profitable models, along with its integration of Blinkit and hyperlocal delivery services, has also improved investor sentiment. Additionally, Eternal’s streamlined corporate structure allows for more transparency and value unlocking, which appeals to global asset managers.
Growing Institutional Confidence in India’s Internet Sector
These developments come at a time when Indian internet and tech companies are experiencing renewed institutional confidence. After a volatile year in 2022, marred by corrections in valuation and funding slowdowns, 2023 has seen several firms stabilize and improve margins.
Zomato, for instance, reported strong quarterly earnings and narrowed losses. Its unit economics, delivery volumes, and customer retention metrics have improved. Blinkit, acquired by Zomato in mid-2022, is also showing signs of operational turnaround.
The broader market has taken note, and institutional investors — particularly those from Europe and the US — have become active participants in both public equity and private secondary markets related to Indian tech firms.
Looking Ahead
With BofA joining the growing list of foreign institutional investors taking positions in Eternal, market watchers believe this could be just the beginning of a new wave of capital inflow into listed Indian tech companies. As investor appetite grows, we may see increased participation from sovereign wealth funds, pension funds, and tech-focused ETFs in these counters.
Eternal’s strong brand association with Zomato, combined with improving financials and strategic clarity, could help it sustain investor interest. Moreover, the company’s plans to double down on its quick commerce segment could further unlock value in the years ahead.
For now, the Rs 267 crore transaction by BofA Securities serves as another strong signal of global capital backing India’s digital economy — and a vote of confidence in Eternal’s future as more than just a food delivery company.
