French BNP Paribas and US hedge fund Millennium Management sold over 9.9 crore shares of Eternal in block deals valued at more than ₹3,264 crore, just before the MSCI index adjustment that is expected to boost Eternal’s stock weighting.
- BNP Paribas sold 5.09 crore shares at ₹327.93 each, raising ₹1,670.9 crore
- Millennium’s affiliate sold 4.9 crore shares at ₹327.9 each, raising ₹1,594 crore
- Eternal’s shares surged over 30% in three months, supported by strong Q1 financials
What happened
French financial services giant BNP Paribas and US hedge fund Millennium Management executed large block sales of Eternal shares on the NSE, collectively selling over 9.9 crore shares worth approximately ₹3,265 crore. BNP Paribas sold 5.09 crore shares at ₹327.93 apiece, while Millennium's affiliate, Integrated Core Strategies (Asia) Pte Ltd, sold 4.9 crore shares at ₹327.9.
These sales occurred at a slight premium of 0.06% over the closing price and were partially offset by small share purchases from both BNP Paribas and Millennium affiliates. Overall trading volume on the day reached 20.2 crore shares worth ₹6,626 crore, reflecting high liquidity and market activity for Eternal stock.
Why it matters
The block deals preceded the MSCI index rebalancing scheduled for September 1, which is set to increase Eternal’s weight in the global benchmark. This anticipated inclusion has driven investor interest and contributed to a notable rally, with Eternal’s shares rising over 30.9% in the past three months and 18% year-to-date.
Eternal’s strong quarterly performance underpins this optimism. The company reported a consolidated net profit of ₹92 crore for Q1 FY27—an increase of nearly 3.7 times compared to the previous year—and a 182% year-on-year rise in operating revenue, strengthening its position amid intense competition and new market entrants in India’s food delivery sector.
What to watch next
Market participants will be closely monitoring the impact of the MSCI index adjustment on Eternal’s stock performance in September, as increased weightage can attract further institutional investments. Additionally, the evolving competitive landscape, including moves by companies like Rapido’s Ownly and Flipkart’s potential entry, may influence Eternal’s market share and valuation going forward.
Investors should also watch for downstream effects from recent operational changes by Eternal’s affiliate, Zomato, notably its shutdown of Hyderabad customer support and ban on analogue dairy products on the platform. These strategic decisions could have implications for operational costs and consumer perception in the short to medium term.