Eternal Limited (formerly Zomato Limited) has filed its monitoring agency report for Q3FY26, demonstrating compliant utilization of proceeds from its ₹8,500.00 crore Qualified Institutions Placement (QIP) conducted in November 2024. The report, prepared by ICRA Limited as the monitoring agency, confirms adherence to regulatory requirements under SEBI regulations.

QIP Issue Overview

The company's QIP, conducted between November 25-28, 2024, involved issuing 33,64,73,755 equity shares at ₹252.62 per share, generating net proceeds of ₹8,436.12 crore. The funds were allocated across four strategic objectives with specific budget allocations.

Q3FY26 Utilization Progress

During Q3FY26, Eternal Limited deployed ₹1,528.33 crore across all four stated objectives. The quarterly utilization breakdown demonstrates active implementation of the company's strategic initiatives.

Compliance and Monitoring

ICRA Limited's monitoring report confirms no deviations from the objects of the issue, with all utilization aligned with the placement document disclosures. The monitoring agency verified fund deployment through statutory auditor certificates, management confirmations, and bank statement reviews. All government and statutory approvals related to the objectives have been obtained, and no unfavorable events affecting project viability were reported.

Unutilized Proceeds Deployment

The remaining ₹3,962.19 crore has been strategically invested across multiple instruments to optimize returns while maintaining liquidity. The deployment strategy includes fixed deposits with major banks, government securities, corporate deposits, and liquid funds.

Key Investment Categories:

• Bank Fixed Deposits: ₹2,185.00 crore across SBI, Kotak Mahindra, Axis, ICICI, and HDFC banks
• Government Securities: ₹337.52 crore in 7.10% G-Sec 2034 and 7.18% G-Sec 2033
• Corporate Deposits: ₹425.00 crore with Mahindra & Mahindra Financial Services
• Liquid Funds: Various mutual fund schemes for short-term liquidity

The investment portfolio generates returns ranging from 6.02% to 8.14%, with the total market value of investments reaching ₹4,277.50 crore including accrued earnings of ₹312.04 crore.

Implementation Timeline

All four objectives remain on schedule for completion within the planned timeframe of FY26-FY28. The company has not reported any delays in implementation, and the monitoring agency found no major deviations from earlier reports. The systematic approach to fund utilization demonstrates effective capital allocation aligned with the company's strategic growth plans.

Eternal has demonstrated confidence in its operational resilience by stating it can effectively handle most effects stemming from India's Social Security Code. The company's management has provided assurance regarding its preparedness for the regulatory framework's implementation.

Regulatory Impact Assessment

The company has conducted a comprehensive evaluation of the Social Security Code's potential effects on its operations. Eternal's assessment indicates that the organization possesses the necessary capabilities and resources to navigate the regulatory changes without significant operational disruption.

Margin Forecast Stability

A key highlight of Eternal's position is the maintenance of its long-term margin forecasts across all business segments. The company has indicated that despite the implementation of India's Social Security Code, it does not anticipate any alterations to its projected margin performance.

Strategic Preparedness

Eternal's confident stance suggests robust internal planning and risk management processes. The company appears to have implemented appropriate measures to ensure compliance while maintaining operational efficiency and financial performance targets.

The organization's ability to absorb regulatory changes without compromising its financial projections demonstrates strategic foresight and operational flexibility in adapting to India's evolving regulatory landscape.