Zomato share price target: Eternal shares could see $1.3 billion FII outflow, MSCI exclusion. Jefferies explains why
Shares of Eternal, which operates Zomato and Blinkit, could come under selling pressure once the company’s board starts the process of conversion into Indian Owned & Controlled Company (IOCC). An overwhelming majority of 99% shareholder votes have been in favour of the proposal to impose a cap on foreign ownership, after which the stock can see outflow of $1.3 billion and even MSCI exclusion, according to Jefferies.
At the end of the March quarter, foreign ownership in Eternal stood at 44.8%. “Given the recent upward movement in the stock along with the volumes since the announcement of last shareholding, it may be possible that the FPI holding may have increased to around 46%, in our view,” Vivek Maheshwari of Jefferies said.
Under MSCI…
