Blinkit parent Eternal's board clears plan to cap foreign ownership at 49.5%

The board of food and grocery delivery company Eternal has approved a proposal to cap foreign ownership in the firm at 49.5%, it said in a notice to the exchanges. The move is aimed at providing "greater operational flexibility" to its quick commerce unit, Blinkit, by allowing it to hold inventory -- rather than operate solely as a marketplace, as required under India’s foreign investment rules.

As of March 31, Eternal’s domestic ownership stood at 55%, the company said in a regulatory filing. "As a result, the company now qualifies as an Indian-Owned-and-Controlled Company (IOCC) under applicable Indian foreign exchange regulations."

It said that the IOCC status will enable Blinkit to improve its margins -- particularly in fragmented or unbranded categories, as well as in established FMCG segments, where owning inventory allows for better margins.

In November 2024, Eternal (then Zomato Ltd) had raised Rs 8,500 crore through a qualified institutional placement (QIP) primarily from domestic mutual funds -- a move that bumped up the proportion of Indian shareholding in the company.