Info Edge India's shares experienced a notable uptick, rising nearly 4% following the strong performance of Eternal Ltd., the parent company of Zomato, in its June quarterly results. This surge in Info Edge's stock price highlights the significant impact of its investment in Eternal on its overall market valuation.

Eternal's Performance Boosts Info Edge

Eternal Ltd.'s shares surged an impressive 15%, reaching all-time highs after the company reported robust June quarterly results. This stellar performance had a positive ripple effect on Info Edge, which holds a substantial 12.38% stake in Eternal.

Info Edge's Stake Value Soars

The value of Info Edge's stake in Eternal has now reached over ₹37,100.00 crore, representing more than one-third of Info Edge's total market capitalization of ₹94,000.00 crore. This underscores the significant role that the Eternal investment plays in Info Edge's overall valuation.

Long-term Investment Success

Info Edge's investment in Eternal has proven to be highly lucrative over the long term. The company initially invested a modest ₹4.70 crore for an 18.5% stake in Eternal back in August 2010 during the seed funding round. At the time of Zomato's initial public offering (IPO) in 2021, Info Edge held close to a 19% stake in the company.

Current Trading Performance

As of the latest trading session, Info Edge shares were priced at ₹1,457.90. However, it's worth noting that despite the recent gains, the stock has experienced a 17% decline year-to-date.

This recent surge in Info Edge's stock price, driven by the strong performance of its Eternal investment, demonstrates the potential impact of strategic investments on a company's market valuation. Investors and market watchers will likely continue to monitor the performance of both Info Edge and Eternal closely in the coming months.

Info Edge , a leading Indian internet company, has announced a significant business move involving its subsidiary, Shopkirana E Trading. The company has agreed to sell Shopkirana to HiveLoop E Commerce, a subsidiary of Trustroot Internet Private Limited (TIPL) - Udaan, for a consideration of $23 million (approximately ₹198 crore).

Transaction Details

According to the company's latest disclosure to the stock exchanges, the deal involves the transfer of Info Edge's entire stake in Shopkirana E Trading Private Limited. The stake, held through Startup Investments (Holding) Limited (SIHL), a wholly-owned subsidiary of Info Edge, consists of 60,673 shares, representing 26.14% ownership on a fully converted and diluted basis.

Terms of the Agreement

In exchange for the Shopkirana stake, HiveLoop E Commerce Private Limited (HEPL) will issue and allot to SIHL:

• 168,70,568 shares of HEPL, amounting to about 0.91% ownership on a fully converted and diluted basis
• The economic rights of these HEPL shares will be linked to 73,561 reference shares, representing a notional reference shareholding at the TIPL level
• The reference shares are valued at $314.39 per TIPL share, totaling approximately $23.13 million

Impact on Info Edge's Portfolio

Post-transaction, Shopkirana will cease to be an associate company of SIHL. Instead, SIHL will hold about:

• 0.91% stake in HEPL on a fully converted and diluted basis
• A notional reference shareholding of approximately 1.48% at the TIPL level

Timeline and Conditions

The agreement for the transfer is expected to be entered into within one week of the board's approval, which was given on July 18, 2025. The completion of the sale is subject to various conditions precedent and is anticipated to conclude by October 31, 2025, or a mutually agreed-upon extended date.

Financial Implications

Based on unaudited figures as of March 31, 2025, Shopkirana contributed:

Strategic Move

This divestment appears to be a strategic decision by Info Edge to realign its investment portfolio. By selling its stake in Shopkirana, the company is set to gain exposure to the broader e-commerce ecosystem through its new stake in HEPL and the associated interest in TIPL-Udaan.

The transaction underscores Info Edge's dynamic approach to managing its investments and its willingness to capitalize on opportunities that arise in the rapidly evolving Indian internet and e-commerce landscape.

As the deal progresses towards completion, market observers will be keen to see how Info Edge utilizes the proceeds and leverages its new strategic position in the e-commerce sector.