The prominent e-tailer based in India,’Flipkart’, that’s owned by Walmart [NYSE: WMT], is preparing for an IPO [Initial Public Offering].
That’s consistent with a piece of writing published Wednesday by Reuters, citing “sources conversant in [Flipkart’s] plans.”
In line with a recent official report by Reuters revealed Flipkart’s future plans, such a flotation could value Flipkart at $45 Bln to $50 Bln, said those familiar with the sources. Apparently the firm is considering an inventory in either Singapore or the United States. The former might be easier because the business is incorporated within the small nation. On the opposite hand, listing on an American exchange would drop the firm into a much wider, & wealthier, the pool of investors.
However, at the reporting time, the Indian regulators are drafting new rules that might permit domestic firms to directly list on foreign stock exchanges.
It was unclear how far along Flipkart is in its plans for an IPO. So far, preparation for a possible listing has occurred mostly internally, consistent with the number of the article’s sources; the firm is considering hiring advisors for the project. Other sources claim that Flipkart is already bringing its operations in line with standards mandated by major regulators.
If Flipkart were to launch an IPO that brought within the desired proceeds, Walmart would stand to realize a windfall. It paid only $16 Bln for a 77% stake within the company earlier in 2018. That deal was the most important single foreign direct investment into a business within the massive nation, a record it still holds.
Moreover, the investors seem to love the thought of Walmart’s big Indian asset rising precipitously in value. Recently on Thursday, they bid up Walmart’s stock by 0.3%, contrasting notably with the pronounced declines of the highest equity indexes on the day.