Startup Originals Team
Global investment bank Goldman Sachs has sold a fresh chunk of its stake in Eternal Limited, India’s foodtech and quick commerce company, through a block deal amounting to ₹355.3 crore. This strategic move marks yet another step in Goldman’s phased divestment from the firm.
Details of the Share Sale:
- Goldman Sachs sold 1.08 crore shares of Eternal in a single block deal yesterday.
- These shares were transacted at ₹329 per share, which was flat compared to the prior closing price.
- The sold stake corresponds to approximately 0.11% of Eternal’s shares.
- The buyer for this block deal was BofA Securities Europe SA, which absorbed the entire lot.
Context: Earlier Divestments & Stock Momentum
- This is not the first time Goldman Sachs has reduced its holdings in Eternal over the past month. Earlier, it offloaded 8.2 crore shares valued at ₹266.9 crore.
- In a separate block deal in September, Goldman sold 9.52 lakh shares to Morgan Stanley, fetching about ₹31.6 crore.
- The decision appears timed with the stock’s recent performance: Eternal shares have jumped nearly 26% over the past three months, and are up 18% year to date.
- Several brokerages have turned bullish on Eternal, especially citing the growth prospects of its quick commerce arm Blinkit.
Financials & Profitability Pressure:
- While revenue has surged, Eternal’s profitability has come under strain. In Q1 FY26, its consolidated net profit plunged over 90% to ₹25 crore, down from ₹253 crore in the same quarter a year ago.
- On the revenue side, the company posted a sharp rise: in Q1, operating revenue increased by 70%, from ₹4,206 crore to ₹7,167 crore.
- The pressure on the bottom line likely factors into Goldman’s decision to lighten its stake.
