Eternal, the parent company of Zomato and Blinkit, is set to acquire a 5.4% stake in MyGate through a share-swap transaction valued at approximately ₹156 crore. The deal involves transferring its entire shareholding in digital advertising platform Adonmo to Vivish Technologies, which operates as MyGate, in exchange for shares in the latter.
Under the transaction, Eternal will transfer 11,214 Series B compulsorily convertible preference shares and 10 equity shares held in Adonmo. In return, it will receive 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares in MyGate.
The transaction is a step towards the proposed merger of Adonmo and MyGate. Following the completion of the merger, Eternal will hold an approximately 4.4% equity stake in the merged entity on a fully diluted basis. The company said this stake is currently valued at ₹156 crore. Eternal had invested ₹112 crore in Adonmo in January 2022.
The agreement for the share transfer is expected to be entered into on or before October 31, 2026, with the acquisition scheduled for completion by December 5, 2026. The transaction is subject to the execution of definitive agreements and the fulfilment of customary closing conditions.
Adonmo operates an ambient digital advertising platform with a cloud-connected network of screens across residential communities. MyGate provides technology solutions for gated communities, including visitor management, security, accounting and community engagement services.
Also read: Eternal Q2 results: Profit below street estimates but revenue, EBITDA beat
Eternal to consolidate going-out business under one subsidiary
Separately, Eternal’s board has approved a business transfer agreement to move its India going-out business to Zomato Entertainment, a wholly owned subsidiary, through a slump sale on a going-concern basis.
The business generated revenue of ₹587 crore in FY26, accounting for 5.39% of Eternal’s standalone revenue. The transfer will involve a cash consideration of approximately ₹130.76 crore, subject to agreed adjustments, and is expected to be completed within 30 days of the agreement’s execution.
The restructuring aims to consolidate the group’s going-out operations under a single subsidiary to streamline its corporate structure and achieve operational synergies. The businesses housed in two other wholly owned subsidiaries, Orbgen Technologies and Wasteland Entertainment, are also expected to be consolidated under Zomato Entertainment, subject to further evaluation.
Also read: KEI Industries Q2 Results: Profit up 29%; EBITDA misses estimates
Eternal Q2 results: Profit rises 92.3%, revenue jumps 77.6%
Eternal reported a 92.3% year-on-year increase in consolidated profit after tax (PAT) to ₹125 crore in the September quarter of FY27, compared with ₹65 crore in the corresponding quarter last year.
Revenue from operations rose 77.6% year-on-year to ₹24,138 crore from ₹13,590 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹752 crore, with an EBITDA margin of 3.1%.
Total expenses increased 75% year-on-year to ₹24,166 crore from ₹13,813 crore in the year-ago quarter.