$SWIGGY

Shares of Eternal and Swiggy fell by as much as 4 percent on Friday after Walmart-owned Flipkart announced plans to enter India's online food delivery market, dampening investor sentiment. Eternal shares slipped 2.47 percent to Rs 280 on the NSE, while Swiggy declined 3.77 percent to Rs 251.70. The sell-off followed Flipkart's announcement that it will launch its food delivery service in the coming weeks, intensifying competition in a market currently dominated by Eternal-owned Zomato and Swiggy. Like everything else we do, we will launch food delivery first, test the value proposition with customers, take feedback and continue improving the product until it really appeals to the customer. After that, we'll start scaling it. Separately, Swiggy's board approved a proposal to cap aggregate foreign ownership at 49.5 percent on a fully diluted basis. The proposed ceiling will apply to all foreign investors, including foreign-owned or controlled Indian entities, foreign portfolio investors (FPIs), and non-resident Indians (NRIs), while excluding investments made through the non-repatriation route. According to a UBS note cited by NDTV Profit, the 49.5 percent cap leaves limited room for additional foreign investment but provides Swiggy with greater strategic and operational flexibility.