Eternal share price rises 1% amid likely block deal worth ₹156 crore. Check details
Zomato's parent company Eternal share price rises over a per cent in Wednesday's trading session after 60 lakh shares worth ₹ 156 crore change hands in block deal window on June 11.
At 9:22 am, Eternal shares climbed over 1.18 per cent to ₹ 258.70 apiece on NSE on Wednesday, as compared to previous close at ₹ 255.68.
Based on available data, around 60.93 lakh shares of the company were traded in a block deal, representing approximately 0.06% of Eternal's total outstanding equity.
The shares were exchanged at an average price of ₹ 256 each, bringing the total deal value to ₹ 156 crore.
Eternal's stock had been under selling pressure in recent days amid reports that Rapido is planning to roll out a food delivery pilot in Bengaluru by the end of the month.
Several reports suggest that Rapido has started onboarding restaurants for its pilot food delivery initiative in Bengaluru. As part of the trial, it is charging a flat commission of ₹ 25 for orders under ₹ 400 and ₹ 50 for those above ₹ 400. This translates to a commission rate of approximately 8–15%, which is notably lower than the 15–30% typically charged by Swiggy and Zomato.
Rapido has reportedly requested its partner restaurants to list items priced as low as ₹ 150, with discounts restricted to those mutually agreed upon with the restaurants, according to sources.
If Rapido succeeds in executing its food delivery plans effectively, Swiggy and Zomato could see their valuations drop by up to 20%, said Karan Taurani, Executive Vice President at Elara Capital.
Brokerage firm Elara Capital has reduced the Eternal stock's target price by 6 per cent from ₹ 300 to ₹ 282. ' Per sensitivity analysis of Eternal, a drop of 200bp/10% in revenue growth/valuation multiple in the food delivery segment may drag our consol. TP by 6% to INR 282 (from INR 300),' the firm said in a note.
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