Food delivery company Eternal, formerly known as Zomato, is staring at a passive outflow of $840 million as global index majors FTSE and MSCI plan to slash the stock’s weightage in their portfolio.
This follows a reduction in the Foreign Ownership Limit (FOL). In FTSE All World Index, the investability weighting from 82.74% to 49.5%.
This limit caps how much of a company’s shares can be held by foreign investors. When this limit drops, index providers like FTSE and MSCI cut the stock’s weight in their indices to reflect the reduced availability for global investors.
This follows a reduction in the Foreign Ownership Limit (FOL). In FTSE All World Index, the investability weighting from 82.74% to 49.5%.
This limit caps how much of a company’s shares can be held by foreign investors. When this limit drops, index providers like FTSE and MSCI cut the stock’s weight in their indices to reflect the reduced availability for global investors.
Eternal will remain in the index with unchanged shares in the issue total of 9,064,966, 438, a release issued by FTSE said.
The change will be effective from the start of trading on Wednesday, May 28.
The Eternal shares are currently part of FTSE MPF All World Index, FTSE Global Large Cap Index and FTSE Emerging Index.
Eternal is also part of the MSCI India…
