BENGALURU / MUMBAI: Eternal Ltd, the parent company of Zomato and Blinkit, has approved a share-swap deal valued at approximately ₹156 crore to acquire a 5.4% stake in Vivish Technologies Pvt Ltd, which operates residential community management platform MyGate.
The transaction involves Eternal exchanging its entire holding in Adonmo, a digital out-of-home (DOOH) advertising technology company, for shares in MyGate. The deal is part of a proposed merger between Adonmo and MyGate, bringing residential community technology and digital advertising operations under a combined business.
Eternal–MyGate Deal: Key Details
Under the proposed arrangement disclosed in a regulatory filing, Eternal will transfer its existing Adonmo shareholding to Vivish Technologies in exchange for newly issued MyGate shares.
The key components of the transaction are:
Shares being transferred: Eternal will transfer 11,214 Series B compulsorily convertible preference shares (CCPS) and 10 equity shares in Adonmo.
Shares being received: In exchange, Eternal will receive 1,84,091 Series C1 CCPS and 164 equity shares in MyGate.
Initial ownership: Eternal is expected to hold a 5.4% stake in MyGate on a fully diluted basis following the share swap.
Post-merger ownership: Its holding is expected to decline to approximately 4.4% after the proposed merger, as other Adonmo shareholders receive shares in the combined entity.
Eternal had invested ₹112 crore in Adonmo in January 2022. The proposed transaction values the stake being exchanged at approximately ₹156 crore.
The definitive agreements are expected to be executed on or before October 31, 2026, with the share-swap transaction targeted for completion by December 5, 2026, subject to the applicable conditions.
Eternal–MyGate Deal: Financial Snapshot
Particulars | Details |
|---|---|
Transaction value | ₹156 crore |
Eternal's initial stake in MyGate | 5.4% |
Expected stake after merger | 4.4% |
Original investment in Adonmo | ₹112 crore |
MyGate operator | Vivish Technologies Pvt Ltd |
MyGate FY26 turnover | ₹229 crore |
MyGate FY25 turnover | ₹171 crore |
Target completion date | December 5, 2026 |
Why Is Eternal Exchanging Its Adonmo Stake for MyGate Shares?
The proposed transaction will shift Eternal's investment from a direct holding in Adonmo to a minority stake in MyGate, which is expected to combine residential community management services with Adonmo's digital advertising network.
MyGate provides technology solutions for gated residential communities, including visitor management, security-related services and resident engagement. Adonmo operates digital advertising screens in residential and commercial locations, including elevator lobbies.
The combination could create opportunities to connect MyGate's residential community network with Adonmo's advertising infrastructure. Brands may be able to use these channels to reach consumers in residential settings, while the combined business could benefit from a broader distribution network.
For Eternal, the share swap offers continued exposure to the digital advertising and residential technology sectors without requiring it to retain a separate direct investment in Adonmo.
MyGate Revenue Rises to ₹229 Crore in FY26
MyGate's operating business has recorded an increase in annual turnover, with revenue rising to ₹229 crore in FY26 from ₹171 crore in FY25. Turnover stood at ₹96 crore in FY24.
The growth reflects an expanding revenue base for the community management platform. The proposed combination with Adonmo could provide additional opportunities to integrate advertising services with its residential community reach.
However, the potential benefits will depend on the successful completion of the merger, integration of the two businesses and their ability to generate sustainable revenue from the combined platform.
Eternal Also Approves ₹130.76-Crore Corporate Restructuring
Separately, Eternal's board approved the transfer of its going-out business, which includes live events and ticketing operations, to its wholly owned subsidiary, Zomato Entertainment Pvt Ltd (ZEPL).
The transfer will be carried out for a cash consideration of ₹130.76 crore. The restructuring is separate from the proposed Adonmo–MyGate transaction.
The move represents another step in Eternal's internal corporate restructuring as the company organises its businesses under separate operating entities.
The proposed ₹156-crore share swap will change the structure of Eternal's investment in Adonmo while giving it exposure to MyGate's residential technology platform and the proposed combined advertising business.
Bottom line: Eternal's proposed deal will convert its entire Adonmo holding into an initial 5.4% stake in MyGate, expected to settle at around 4.4% after the merger. The transaction brings together residential community management and digital advertising, while allowing Eternal to maintain a minority investment in the combined business.