Walmart-controlled Indian e-commerce firm Flipkart is preparing for an initial public offering abroad in early 2021, which could give the company a value of up to $ 50 billion (about Rs 3,68,512 crore), which would give the company’s passengers Has been reported.
Bengaluru based Flipkart, Who dies as players Of amazon Local units in India and India believe, According to a source with knowledge of the case, the target would be for an appraisal in the $ 45 billion (about Rs 3,31,661 crore) – $ 50 billion (about Rs 3,68,512 crore) range.
If achieved, it would mean Walmart Would have more than doubled its investment.
Flipkart is likely to opt for an initial public offering (IPO) between Singapore, or the United States, with two other sources stating that those whose names should not be discussed are private.
According to sources, “Flipkart is incorporated in Singapore, but the listing in the United States, where the parent Walmart is headquartered, could provide access to a deeper pool of funds.”
Flipkart and Walmart did not respond to Reuters requests for comment.
Sources said the preparation and deliberation is largely internal for now, but the company is preparing to tap external consultants on the process soon.
As discussed, India prepares new rules that can pave the way for domestic companies to be listed directly abroad.
Two other sources familiar with the plans said work has begun to ensure compliance, legal and finance functions will meet regulatory standards ahead of a possible list.
“Right now, the IPO is supposed to be more or less the end of 2021 or 2022, but the current crisis has blurred things a bit,” one of these two sources said.
The second person stated that being “IPO ready” there has been a steady decline in top level meetings at the internal level.
Bumper valuation Walmart acquired Flipkart holds about 77 percent stake in 2018 worth about $ 16 billion (about Rs. 171728 crore). The deal is the largest foreign direct investment in India.
Later that year, in a regulatory filing, Bentonville, Arkansas-headquartered Walmart said it could make Flipkart public in four years.
In July this year, Flipkart picked up $ 1.2 billion (about Rs. 8,845 crore) in new funding with Walmart as its principal investor. Flipkart was valued at that time, which counts China. Tencent, US hedge fund Tiger global, And Microsoft It has $ 24.9 billion (approximately Rs. 1,83,612 crore) among its investors.
Like its rival Amazon, Flipkart started by selling books, but sales quickly diversified. Smartphones, Clothes and other items. It now competes with Amazon in most categories.
That expanding market has attracted not only global giants like Walmart and Amazon, but also India’s oil-to-telecom conglomerate Reliance, which has jumped into the fray.
This year Mumbai-based Reliance Launched An online grocery service, Jio mart, With his billionaire boss Mukesh Ambani In July, telling shareholders that delivery will expand into electronics and fashion products.
© Thomson Reuters 2020
Is Android One outstripping Nokia smartphones in India? We discussed it Of class, Our weekly technology podcast, which you can subscribe through Apple Podcast, Google Podcast, or RSS, Download episode, Or simply hit the play button below.