India's Eternal, Swiggy fall after report on Flipkart's food-delivery foray
BUZZ-India's Eternal, Swiggy fall after report on Flipkart's food-delivery foray ** Online food delivery platforms Eternal ETEA.NS and Swiggy SWIG.NS shares fall 3% and 5.2%, respectively
** Drop after Moneycontrol reports that Walmart WMT.O-owned Flipkart plans to enter India's online food-delivery market in the coming weeks, signaling intensifying competition in the sector
** Flipkart Group CEO Kalyan Krishnamurthy tells Moneycontrol the launch begins at a limited scale before a broader rollout, mirroring the company's approach with quick-commerce unit Flipkart Minutes
** The prospect of another well-funded competitor could raise concerns over pricing, customer-acquisition spending and margin pressure across the sector
** Separately, Swiggy approves a proposal to cap total foreign ownership at 49.5%, which shareholders will consider at its August 18 annual general meeting; foreign ownership in firm stands at 49.76%
** UBS says proposed cap leaves little room for further foreign investment
** Swiggy is down 10.3% this week, Eternal down 2.7%
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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