Shifting Institutional Interest
ITC and Eternal (more or less Zomato) differ in how they have been received by investors over the past few quarters. As per data from ITC, FIIs have gradually cut their stake from 43.26 percent in December 2023 to 40.17 percent in December 2024. Meanwhile, DIIs have not only been adding to their holdings but have increased holdings from 41.99% to 44.92% during the same period. There is a significant shift in institutional preference as domestic investors are showing preference for ITC and foreign investors are allocating. The ITC share price movements likely reflect this institutional rebalancing, suggesting changing market perceptions about the company’s growth trajectory.
Foreign Investment Exodus in Zomato
The FII shareholding pattern for Zomato (listed as Eternal Limited) clearly shows a drastic fall for example from 54.11% in June 24 to 44.36% by March 25. This is a significant 9.75% exodus of foreign capital over three quarters. Such large-scale selling would naturally impact the Zomato share price, assuming it is not positive of any operational improvement the company has achieved. This contrasts with ITC’s more gradual FII reduction, which could indicate that foreign investors have more imminent worries with respect to Zomato’s business model or valuation.
Domestic Institutional Support
While foreign investors reduced their stakes in both companies, DIIs have responded differently to each stock. Over the period, domestic institutions have consistently increased their holdings and have raised them from 41.99% to 44.92%. In the case of Zomato, DIIs have even shown stronger conviction, hence increasing their stake from as low as 15.79% in June 2024 to a whopping 23.56% by March 2025, that is, by a remarkable 7.77% increase. This contrast behavior might reflect the fact that domestic investors are more optimistic about both companies than their foreign peers but are excited about Zomato’s potential in the long run regardless of its current difficulties.
Public Shareholding Trends
The public shareholding percentages reveal interesting differences in retail investor sentiment. Over the period, ITC’s ratio of public shareholding did not undergo a significant variation and remained at 14.75% to 15.5%. On the other hand, the shareholding of public of Zomato is higher but also increased from 30.1% to 32.08%. The fact that online trading of Zomato shares has attracted retail investors in the face of volatility in Zomato share price suggests that retail investors have been more interested in investing in Zomato, possibly owing to its growth potential. The consistently higher public participation in Zomato compared to ITC might indicate retail investors’ preference for new-age technology businesses over traditional consumer goods companies.
Promoter Absence Analysis
A striking similarity between both companies is the 0% promoter holding across all periods. For Zomato, this reflects its evolution from a venture capital-backed startup to a publicly-listed entity where founders have reduced their stakes. For ITC, the absence of a dominant promoter group is characteristic of its widely held ownership structure that has evolved over decades. This shared characteristic means both companies are primarily driven by institutional and public investors rather than promoter vision, though their governance structures and decision-making processes likely differ significantly.
Changing Investment Narratives
The contrasting patterns suggest evolving investment narratives for both companies. ITC’s stable public interest coupled with increasing domestic institutional support points to a perception of reliability and steady returns, typical for established consumer goods companies. The ITC share price benefits from this stability perception, making it a potential defensive play during market volatility. Conversely, Zomato’s higher but fluctuating public shareholding alongside dramatic institutional shifts suggests a more volatile growth story. The Zomato share price would reflect this dynamism, attracting investors seeking potential high growth despite increased risk.
Future Outlook Indicators
Looking ahead, the trajectory of institutional investments provides essential clues about market expectations. The continued DII interest in both companies suggests domestic investors foresee value, based on local market insights. For ITC, the relatively balanced institutional ownership between foreign and domestic investors indicates a mature, stable outlook. For Zomato, the rapid realignment from foreign to domestic institutional ownership might signal a period of reassessment and potential stabilization ahead. Both the ITC share price and Zomato share price will likely respond to these institutional movements before retail investors fully recognize the shifting sentiments.