Flipkart IPO: Walmart Inc is preparing to launch an IPO of its controlled Indian e-commerce company Flipkart in the US stock market. According to media reports, Walmart has hired Goldman Sachs as a consultant for this. At the same time, the company aims to raise $ 10 billion i.e. about 75 thousand crore rupees from the market through the IPO of Flipkart. Let us know that Walmart acquired Flipkart in 2018 and at the end of the same year said that it can make Flipkart public in 4 years. That is, this preparation of Walmart has been a long time, but for some reason it has been delayed.
Part of the IPO Flipkart strategy
According to Financial Express, the e-commerce company owned by Walmart said in a statement that the IPO has always been a part of Flipkart’s long-term strategy. However currently our focus is on development and democratizing commerce in India through technology. The statement also said that the biggest areas for investment for Flipkart will remain in technology, operations and new capabilities.
Walmart may sell 25% stake in Flipkart
Earlier in September, it was also reported that Indian e-commerce company Flipkart controlled by Walmart is preparing to launch its overseas IPO in 2021. Then there was a report that the company plans to get $ 45-50 billion from the IPO. Had it been so, Walmart would have received double the amount it had invested in Flipkart.
According to the current report, Walmart can sell its 25 per cent stake in Flipkart through an IPO. It is believed that work on the IPO is going on fast. However this process has been delayed due to Corona epidemic. But amidst the Corona crisis, demand for e-commerce has increased significantly.
Walmart had acquired
Walmart acquired Flipkart in 2018. The deal was worth about $ 1600 million. With this deal, Flipkart founders Sachin Bansal and Binny Bansal became billionaires. In late 2018, Walmart said that it could make Flipkart public in 4 years. In July this year, Flipkart raised $ 1.2 billion in a fresh funding from Walmart.
With whom share
Currently, Walmart owns 82.3 per cent stake in Flipkart. 5.21 percent is with Chinese Tencent. Founder Bini Bansal holds 1.45 per cent stake. If this IPO plan is successful, then it will be the largest listing in the foreign market of any Indian company. The market value of Flipkart will also be $ 4000 million. Walmart acquired Flipkart in 2018 for $ 1600 million.