Eternal to Acquire 5.4% Stake in MyGate Through Share Swap
Eternal to acquire a 5.4% stake in MyGate via a INR 156 crore share swap of its AdOnMo holding ahead of a merger.
Eternal, the parent of Zomato and Blinkit, will acquire a 5.4% fully diluted stake in MyGate, operated by Vivish Technologies, through a share swap valued at about INR 156 crore. No cash is involved. Eternal will transfer its entire holding in advertising technology company AdOnMo, comprising 11,214 Series B compulsorily convertible preference shares and 10 equity shares, and receive 1,84,091 Series C1 preference shares and 164 equity shares of MyGate.
The swap comes ahead of a proposed merger of AdOnMo with MyGate, after which AdOnMo’s other shareholders will become shareholders of the combined entity and AdOnMo will cease to exist as a separate company. Eternal’s stake will dilute to about 4.4% once the merger completes. AdOnMo founders Sandeep Bommireddi and Sravanth Gajula are reported to be joining MyGate’s board as co-founders.
The shares Eternal receives are valued about INR 44 crore above its INR 112 crore investment in AdOnMo in January 2022, an unrealised gain, as Eternal is not exiting for cash. MyGate, which serves gated communities with visitor, delivery and security management, reported turnover of INR 229 crore in FY26, up from INR 171 crore in FY25. The transaction is expected to complete on or before December 5, 2026, subject to definitive agreements and customary closing conditions.
