ICRA Limited issued a monitoring report on Eternal Limited, formerly Zomato Limited, concerning the utilization of proceeds raised through qualified institutions placement (QIP) for the quarter ended December 31, 2025 (Q3 FY2026). The report indicates that the utilization of the issuance proceeds aligns with the objects of the issue, with no deviations noted.
Monitoring Agency’s Key Findings
ICRA Limited, the monitoring agency, reported that the utilization of the funds raised through qualified institutions placement is in line with the company’s stated objectives. The report covers the quarter ending December 31, 2025.
Details of Issue and Utilization
Eternal Limited issued 33,64,73,755 equity shares at a price of ₹252.62 per share, aggregating to ₹8,500.00 Crore. The net proceeds from the placement, as per the placement document, were ₹8,436.12 Crore. ICRA will monitor the net proceeds of ₹8,436.12 crore for Q3 FY2026.
Arrangements for Monitoring Proceeds
All utilization is per the disclosures in the Offer Document. The source of information includes a statutory auditor certificate and confirmation from management, as well as bank statements. No deviation was observed.
Progress on Object(s)
Expenditure Towards Setting Up and Running Operations of Dark Stores and Warehouses: Against a proposed ₹2,137.00 Crore, the amount utilized as of the beginning of the quarter was ₹1,038.63 Crore. During the quarter, an additional ₹759.19 Crore was utilized, bringing the total utilized amount to ₹1,797.82 Crore and leaving an unutilized amount of ₹339.18 Crore.
Advertising, Marketing and Branding Initiatives Across Business Offerings: Against a proposed ₹2,492.00 Crore, the amount utilized as of the beginning of the quarter was ₹636.04 Crore. During the quarter, an additional ₹428.64 Crore was utilized, bringing the total utilized amount to ₹1,064.68 Crore and leaving an unutilized amount of ₹1,427.32 Crore.
Investment in Technology Infrastructure and Capabilities: Against a proposed ₹1,769.00 Crore, the amount utilized as of the beginning of the quarter was ₹329.36 Crore. During the quarter, an additional ₹167.96 Crore was utilized, bringing the total utilized amount to ₹497.32 Crore and leaving an unutilized amount of ₹1,271.68 Crore.
Deployment of Unutilized Proceeds
The unutilized proceeds have been deployed in various instruments, including fixed deposits with SBI Bank (₹975.00 Crore), Kotak Mahindra Bank (₹500.00 Crore), and Axis Bank (₹600.00 Crore), as well as investments in government securities and liquid funds. The total market value of these investments as of the end of the quarter is ₹4,277.50 Crore.
Utilization for General Corporate Purposes
The total amount utilized for general corporate purposes is ₹1,114.11 Crore. This includes employee benefits and other expenses for Eternal Limited and its subsidiaries in various quarters.
Source: BSE
