Walmart Inc. had hired Goldman Sachs to explore an initial share sale of its Flipkart unit in the US to raise around $10 billion.
Work on the IPO (initial public offering) is on in full swing and the advent of the pandemic has only hastened the process, given the spectacular surge in demand on e-commerce platforms
25% Stake Sell
The Bentonville, Arkansas-based Walmart is planning to sell around 25% in India’s largest online retailer.
The IPO will offer an opportunity to minority investors to sell or pare their holdings.
Largest Company if listed
If Flipkart’s IPO plans are successful, it will be the largest by a company based in India on overseas exchanges.
Earlier Funding
In July, Flipkart raised $1.2 billion in a fresh funding round with Walmart as the lead investor
Walmart holdings
Walmart now owns an 82.3% stake in Flipkart, with US-based hedge fund Tiger Management, China’s Tencent, Accel Partners and Microsoft Corp., among the other key investors.
Company’s Performance
E-tailers generated $4.8 billion in gross merchandise value (GMV) during the recent festive season sale, according to consultancy firm Forrester Research.
Flipkart’s valuation will also more than double to $40 billion since Walmart’s acquisition of the e-commerce giant.
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