Mygate, Adonmo set to merge; Eternal to hold 4.4% stake in combined entity

Eternal, formerly Zomato, will acquire an approximately 4.4% stake in Mygate on a fully diluted basis through a share swap involving its entire holding in Adonmo, according to a regulatory filing dated October 21.

The stake in the merged Mygate entity is currently valued at Rs 156 crore. Eternal had invested Rs 112 crore in Adonmo in January 2022.

Under the transaction, Eternal will transfer 11,214 Series B compulsorily convertible preference shares and 10 equity shares held in Adonmo to Mygate. In exchange, it will receive 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares in Mygate.

The transaction forms part of the proposed merger between Mygate and Adonmo. Once completed, other Adonmo shareholders will also become shareholders of the merged Mygate entity, while Adonmo will cease to exist as a separate entity.

Founded in 2016, Adonmo operates an ambient digital advertising platform with a cloud-connected network of screens across residential communities. 

Mygate provides technology solutions for gated residential communities, with services that include visitor management, security, accounting and community engagement for residents.

Mygate reported a 34% year-on-year increase in turnover to Rs 229 crore in FY26. The company had reported a turnover of Rs 171 crore in FY25 and Rs 96 crore in FY24, according to the filing

The proposed transaction remains subject to the execution of definitive agreements and the fulfilment of customary closing conditions.

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