India’s leading e-commerce giant Flipkart is gearing up for a transformative move as it prepares for a much-anticipated Initial Public Offering (IPO). Sources have told CNBC-TV18 that Flipkart’s board has approved relocating its domicile from Singapore to India, a strategic decision to simplify regulatory and operational processes.
| Company | Value | Change | %Change |
|---|
According to sources, the IPO is expected to occur within 12 to 18 months, likely by the end of this fiscal or early in the first quarter of FY26. The company, last valued at $36 billion, is positioning itself to achieve one of the largest IPOs in Indian history.
Why the Shift?
Flipkart’s move to India is not merely about location but compliance. By relocating, the company sidesteps the complexities of India’s stringent FEMA and FDI regulations, which foreign-controlled firms in the e-commerce sector must navigate. Being domiciled in India also eliminates dual oversight from both Singapore and Indian authorities, streamlining governance and tax structures.
This strategic shift will pave the way for smoother operations and IPO-related processes, making Flipkart more attractive to investors.
Ownership Structure
Walmart, Flipkart’s largest stakeholder, holds an 85% share after a $3.5 billion investment earlier this year. This marks an increase from the 75% ownership reported in January 2023. The remaining 15% is owned by a mix of investors, including:
- Tiger Global Management
- DST Global
- Qatar Investment Authority
- GIC (Government of Singapore Investment Corporation)
- Financial Performance
Despite its dominance in India’s e-commerce space, Flipkart reported a loss of ₹2,358 crore on revenues of ₹17,907 crore in FY24. Yet, the company has aggressively raised funds, including nearly $1 billion this year, signalling its intent to solidify its market position and tap into India’s burgeoning digital economy.
IPO Prospects
Flipkart’s IPO could potentially surpass Hyundai’s 2024 IPO, which valued the company at $19 billion, setting a new benchmark for the Indian market.
CNBC-TV18 has reached out to Flipkart, but the company declined to comment.
Also read: Accenture Q1 beats the Street with 9% revenue growth at $17.7 bn; raises FY25 guidance
First Published: Dec 19, 2024 8:07 PM IST
