ETERNAL

Eternal Ltd — the company formerly known as Zomato — may be staring at passive outflows nearing $840 million as global index majors FTSE Russell and MSCI prepare to trim their weightage in their portfolios, CNBC TV-18 reported, citing IIFL Capital Services. The impending changes follow a sharp reduction in the company’s foreign ownership limit (FOL), which was brought down from 100 percent to 49.5 percent. That move has effectively capped the extent to which overseas investors can hold the stock, forcing index providers to recalibrate its representation. FTSE Russell said on Friday that it will implement the adjustment to Eternal’s investability weight on May 27. The stock currently figures in several of FTSE’s prominent indices, including the FTSE All-World Index, the FTSE MPF All-World Index, the FTSE Global Large Cap Index, and the FTSE Emerging Index. FTSE’s rebalancing alone could lead to passive outflows of about $380 million, or roughly ₹3,235 crore, IIFL estimated. Meanwhile, MSCI’s May review — which is also expected to account for the FOL cut — could add another $460 million (around ₹3,917 crore) to the tally.