Eternal shares slip 4% after FTSE, MSCI cut stock weight; $840 million in passive outflows likely

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Shares of Eternal, formerly known as Zomato, slipped 4% to an intraday low of Rs 227.95 on the BSE on Monday amid expectations of passive outflows worth $840 million following weightage cuts by global index providers FTSE and MSCI.

The revisions come after a reduction in the Foreign Ownership Limit (FOL) for the stock. In the FTSE All World Index, Eternal’s investability weighting has been slashed from 82.74% to 49.5%.

The FOL determines the extent to which foreign investors can hold a company’s shares. A reduction in this limit forces global…



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Eternal shares slip 4% after FTSE, MSCI cut stock weight; $840 million in passive outflows likely


Shares of Eternal, formerly known as Zomato, slipped 4% to an intraday low of Rs 227.95 on the BSE on Monday amid expectations of passive outflows worth $840 million following weightage cuts by global index providers FTSE and MSCI.

The revisions come after a reduction in the Foreign Ownership Limit (FOL) for the stock. In the FTSE All World Index, Eternal’s investability weighting has been slashed from 82.74% to 49.5%.

The FOL determines the extent to which foreign investors can hold a company’s shares. A reduction in this limit forces global…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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