Technology

Flipkart planning to go private with buying shares back from Small Investors

Flipkart planning to go private with buying shares back from Small Investors”

Flipkart group, including fashion portals Myntra and Jabong, have a combined market share of over 39.1 per cent while Amazon has 31.1 per cent share in the Indian online retail market, according to a recent report by Forrester Research, the ET report said. Amazon has reportedly also sought a non-compete agreement with Flipkart's founders.

As reports of Flipkart's imminent acquisition by Walmart and also Amazon gather steam, global mutual funds are joining the ranks in their assessment and valuation of India's e-commerce poster boy. Flipkart's investors and founders are in favour of the deal with Walmart, with founder Sachin Bansal overseeing final negotiations with Walmart, the TV report said.

The offer could trigger a bidding war between Amazon and Walmart - something the two retailers have already reportedly been involved in before. Furthermore, Flipkart founder Sachin Bansal recently visited the United States to negotiate with Walmart, and the retail giant may return the favour by visiting India soon to close the deal.

Walmart is said to have had the backing of Flipkarts majority shareholders who believe a merger with Amazon would not go past the Competition Commission of India, besides facing a backlash from different sections of the trading community. Flipkart did not immediately respond to an email seeking comment.

With India seen as the next bastion of growth for e-commerce Amazon and Walmart have been picking up their efforts in the country. Amazon entered the Indian market around 2012 and has 31 percent of the online retail market, according to Forrester, eight percentage points behind its homegrown rival.

The sharp fall in the share price of InterGlobe Aviation, the company that operates IndiGo, has come under the regulatory scanner.

It is likely to involve giving cash exits to some existing Flipkart investors as well, a source close to the matter said.

Walmart has agreed to invest around $12 billion to pick up around 60 per cent stake in Flipkart, in a mix of primary and secondary deals.

The world's largest online retailer has been pouring billions of dollars into India to ship goods to shoppers faster, contributing to growing losses internationally.

Walmart's shares ended 1.22 percent lower at $86.34 on Wednesday.



Like this

Latest


04 May 2018
Mets' deGrom departs with hyperextended right elbow
Cespedes also inspected the area on his way out to left field prior to the third inning, but seemed to come up empty. The Red Sox were two outs away from improving to 22-7 until Alex Gordon went deep off Craig Kimbrel in the ninth.

04 May 2018
Ryan Reynolds reveals struggle with anxiety
For instance, while promoting " Deadpool 2 ", Reynolds has found that doing interviews in character has helped him combat stress. Moreover, the music video will go down in history as one of the most bizarrely brilliant sights we've ever seen.

04 May 2018
Woods returns from post-Masters break to play Quail Hollow
Just inside our triple-figure price range, both Gary Woodland [100.0] and Kevin Streelman [110.0] have bags of course form. The Wells Fargo Championship was held at Eagle Point previous year so Quail Hollow could prepare for the PGA Championship.

03 May 2018
Riders left dangling for hours as roller-coaster malfunctions at Universal Studios Japan
But some visitors were nonetheless horrified by the incident. "It's scary to think (about) if we had been on board". A roller coaster at Universal Studios in Japan suddenly broke down mid-ride at 100 feet for as long as two hours.

03 May 2018
Robert Mueller's team floated idea of subpoena for Trump
He'll be replaced by Emmet Flood a veteran Washington attorney who represented Bill Clinton during his impeachment. Well, Congress can't get just any access it wants to documents in an ongoing investigation.

03 May 2018
Record services revenue lets Apple plot future beyond iPhone growth
The company is the world's second largest smartphone manufacturer behind Samsung and with a clear lead over third-placed Huawei. But all this has not affected the revenue collection of Apple which according to the report has hiked up by fourteen percent.

02 May 2018
V4.0 Patch Notes - Season 4 is HERE!
There, but also in other parts of the map, players can stumble upon craters that have glowing rocks lying around. The game is split into seasons, with each lasting several weeks and all introducing new features and items.

01 May 2018
5 healthy habits proven to increase life expectancy
The results of the study suggest that following these habits can extend your life by a decade. For women, it meant an additional 43 years for the healthiest group, compared to 29 years.

30 April 2018
India's Modi Invites China's Xi for an Informal Summit in 2019
The talks between PM Modi and Xi focused on diverse areas of India-China cooperation. This will be a first such project in Afghanistan.

29 April 2018
The Very Best Twitter Reactions After Bellator 198
Fedor earned his first knockout victory since a 2012 stoppage over Pedro Rizzo and his first victory under the Bellator banner. He's unsure of his plans for a next fight, but he's got a name in mind. "I was thinking, maybe, Ben Askren".



Recommended