In a bulk transaction valued at INR 1,488.71 Cr., French banking giant BNP Paribas has acquired 6.24 lakh shares of foodtech major Eternal.

According to NSE data, BNP Paribas Financial Markets acquired 6,24,85,371 shares at a price of INR 238.25 each, which represents a 0.2% discount from the stock’s last closing price of INR 238.75 on the BSE on Friday.  Concurrently, the banking major divested 1.88 lakh shares through a bulk transaction worth ₹4.35 crore.

Related: Are IPO-bound Stocks More in Demand in the Unlisted Market?

BNP Paribas Financial Markets sold 2,48,31,803 shares of the beauty ecommerce giant Nykaa at a price of INR 202.81 per share, resulting in a total value of INR 503.61 Cr.  The transaction was carried out at a 0.2% discount relative to Nykaa’s closing price of INR 203.25 on the BSE.

It also acquired 1,01,548 shares of Nykaa at a price of INR 202.08 per share, amounting to a total of INR 2.05 Cr.

This could indicate that BNP Paribas is aiming to realize gains, given the steady rise of both stocks over the last five trading sessions.

The deal occurs against the backdrop of the board of Zomato’s parent company approving a proposal to cap foreign ownership at 49.5% last month.  Eternal asserted at that time that the transition of its quick commerce vertical, Blinkit, from a marketplace to an inventory ownership model would be facilitated by its becoming an Indian-owned-and-controlled company (IOCC).

Immediately after this, FTSE Russell, a global index provider, reduced the investability weighting of Eternal in its indices from 82.7% to 49.5%.   IIFL Capital, a brokerage firm, estimates that the index provider’s action could result in an outflow of INR 3,235 crore from the stock.

BNP Paribas, however, seems to have gone against the current and acquired the stake in the major foodtech company.  It is worth mentioning that this occurs at a moment when the foodtech sector is grappling with heightened competition, primarily driven by the expansion of quick commerce and a deceleration in growth within its core business.

In the fourth quarter (Q4) of the fiscal year 2024-25 (FY25), the foodtech major experienced a nearly 78% decline in net profits, dropping to INR 39 Cr from INR 175 Cr in the same period last year.

In the quarter being examined, the company’s revenue from operations increased by 64%, reaching INR 5,833 Cr, up from INR 3,562 Cr in Q4 FY24, despite a deceleration in growth within the primary food delivery sector.

Eternal’s stock prices have decreased by 14.12% on a year-to-date (YTD) basis, in light of this subdued growth.

Meanwhile, the bulk deal involving Nykaa occurred on the same day that the BPC (beauty and personal care) giant published its financial results.  The consolidated net profit of the beauty ecommerce major soared by 110% to INR 19.1 Cr in Q4 FY25, up from INR 9.1 Cr in the same period last year.  Meanwhile, the operating revenue for the quarter being examined skyrocketed by 24% to INR 2,061.8 Cr from INR 1,667.9 Cr in Q4 FY24.