Zomato share price rises 3% after firm informs of liquidation of its Netherlands subsidiary

“…we wish to submit that Zomato Netherlands B.V. (‘Zomato Netherlands”), a step-down subsidiary of Eternal Limited (formerly known as Zomato Limited) (‘the Company”) situated in the Netherlands, has initiated the process of liquidation w.e.f. April 9, 2025,” the company said in a stock regulatory statement on Thursday.

Recently rebranded as Eternal Limited, shares of the company were trading at ₹217.566 apiece on the National Stock Exchange, up 2.97% at 11:45 AM. The company's market capitalisations stands at ₹2.09 lakh crore, according to NSE.

As disclosed in Zomato’s red herring prospectus dated July 6, 2021, and prospectus dated July 19, 2021, Zomato Netherlands does not have any active business operation.

“It may be further noted that Zomato Netherlands is not a material subsidiary of the company, and the dissolution of Zomato Netherlands will not affect the turnover/revenue of the company,” Eternal further said.

The total net worth of Zomato Netherlands was ₹32 lakh.

According to the exchange filing, Zomato Netherlands turnover, as well as its contribution to total turnover and worth of the company, was nil.

The process of liquidation is expected to be completed within one year, subject to requisite approvals.

The food and grocery delivery platform officially changed its name to 'Eternal Ltd' on the stock exchanges on April 9, following approval from the Ministry of Corporate Affairs.

To be sure, the brand name of the company's food delivery business, Zomato, will remain the same, along with the app. However, the name of the corporate entity has been changed to Eternal, along with its stock ticker.

Recently, global brokerage firm Jefferies has raised concerns over rising competition in the quick commerce space.

After Zomato’s shares more than doubled in value in 2024, analysts at Jefferies predict that 2025 could be a breather year, with the stock likely shifting gears into a phase of price consolidation.

The brokerage, as per news reports, said that aggressive strategies by existing players and the entry of new competitors could lead to higher discounting, posing risks to Zomato's medium-term profitability.