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 has provided significant updates on its investment activities and the restructuring of its Shopkirana stake transfer deal. The company's board meeting held on December 12, 2025, addressed key developments in both its subsidiary investments and the previously announced divestment plans.

Investment Update in Startup Internet Services Limited

The company has made substantial progress on its investment commitment in Startup Internet Services Ltd. (SISL), its wholly-owned subsidiary. Following the board's earlier approval in May 2025 for an investment not exceeding ₹300 crores, Info Edge has now deployed ₹120 crores based on drawdown requests received from the Alternative Investment Fund (AIF).

The remaining ₹180 crores will be disbursed in one or more tranches based on future fund requirements of SISL, maintaining alignment with the objectives outlined in the original May 2025 intimation.

Shopkirana Deal Restructuring

A significant development has emerged regarding the previously announced transfer of Info Edge's entire stake in Shopkirana E Trading Private Limited. The original agreement, approved in July 2025, involved transferring the company's 60,673 shares (26.14% on fully converted and diluted basis) to HiveLoop E Commerce Private Limited (HEPL) for approximately $23.13 million.

However, certain condition precedents have taken longer than anticipated, prompting a strategic restructuring of the transaction. The new arrangement involves:

Modified Transaction Structure

Under the restructured arrangement, TIPL will directly acquire the entire shareholding of Startup Investments (Holding) Limited (SIHL) in Shopkirana, instead of the previous indirect acquisition through HEPL. In consideration, TIPL will issue and allot certain shares directly to SIHL.

This modification aims to consummate the transaction in a more timely manner, addressing the delays encountered with the original structure. The company expects to provide detailed disclosure in terms of listing regulations upon finalization of negotiations and discussions on the definitive agreements.

Strategic Implications

These developments reflect Info Edge's continued focus on optimizing its investment portfolio and subsidiary operations. The steady deployment of funds in SISL demonstrates the company's commitment to its approved investment strategy, while the restructuring of the Shopkirana deal shows adaptability in executing complex transactions.

The extended timeline for the Shopkirana transaction completion, now pushed to March 2026, provides additional flexibility for both parties to finalize the definitive agreements and meet all necessary conditions precedent.