(LiveMint)
Walmart Inc. said on Saturday in a filing with a US regulator that it may launch a Flipkart IPO in as early as four years, detailing for the first time a potential listing timeline for Walmart’s largest-ever acquisition. The $16 billion (Rs1.05 trillion) Flipkart-Walmart deal was struck on 9 April. Minority investors holding 60% of Flipkart shares “acting together, may require Flipkart to effect an initial public offering” (IPO) four years after the close of the Flipkart-Walmart deal, the Bentonville, Arkansas-based retailer said in a 11 May filing with the US Securities and Exchange Commission.
The Flipkart IPO should be done at no less a valuation than that at which Walmart invested in the Indian e-commerce firm, the filing said. Walmart announced earlier this week that it will pay $16 billion for a roughly 77% stake in Flipkart in what is the US retail giant’s largest-ever deal and a move to take on arch rival Amazon.com Inc. in a key growth market.
The investment implies a valuation of nearly $21 billion for Bengaluru-headquartered Flipkart. Minority shareholders after the deal include co-founder Binny Bansal, China’s Tencent Holdings, U.S. hedge fund Tiger Global Management and Microsoft Corp. The deal now awaits clearance from India’s anti-trust regulator and is expected to close later this year.
