Walmart’s Flipkart explores US listing with SPAC as option; likely to seek at least $35B valuation

By: |
March 4, 2021 3:28 PM

Merging with SPACs, which are shell companies that raise money from public investors intending to acquire a business within two years, will allow Walmart to take its India unit to market at a faster pace than the usual IPO route.

flipkartThe e-commerce firm is joining other Indian firms like online grocer Grofers in exploring a U.S. listing through SPAC deals.

Walmart Inc.’s Flipkart is exploring going public in the U.S. through a merger with a blank-check company as it seeks to quicken its listing process, according to people familiar with the matter. The Bengaluru-based online retailer has been weighing a U.S. initial public offering and it’s now also looking at other options, the people said. Flipkart’s advisers have approached several SPACs, said one of the people, who asked not to be identified as the information is not public. Flipkart could seek a valuation of at least $35 billion in a blank-check transaction, the people said.

Deliberations are at an early stage and Flipkart could still explore other options, the people said. A representative for Flipkart had no immediate comment. The e-commerce firm is joining other Indian firms like online grocer Grofers in exploring a U.S. listing through SPAC deals. ReNew Power last week agreed to merge with a U.S.-listed special purpose acquisition company in a deal that will give India’s biggest renewable power producer an enterprise value of $8 billion.

Also read: Bitcoin’s share in global crypto market cap declined 35% in 8 years; here’s why crypto king lost ground

Merging with SPACs, which are shell companies that raise money from public investors intending to acquire a business within two years, will allow Walmart to take its India unit to market at a faster pace than the usual IPO route. As many as 10 Indian companies could go public through SPAC deals before the end of the year, Utpal Oza, head of investment banking for India at Nomura Holdings Inc., said in an interview. Flipkart, which is battling with e-commerce arch-rival Amazon.com Inc. and Mukesh Ambani’s retail venture for market share in India, started operations in 2007 and now sells 80 million products on its platforms. Walmart acquired a majority stake in Flipkart in a $16 billion deal in 2018.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1CG Power case: SAT asks Sebi to pass final order in 6 months
2What is Rights Entitlement of shares? How investors can benefit or lose money; all you need to know
3TCS, Infosys, IT cos Q4 results preview: Strong revenue growth, hiring pick-up, lower margins