Retail giant Walmart to takeover online shopping giant Flipkart?
Retail giant Walmart to takeover online shopping giant Flipkart?
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Online shopping giant Flipkart has recently brought back $350 million, 2,330 crores in Rs., worth of shares from its investors. The company is seeking to convert its Singapore-incorporated company to a private limited firm. This conversion could ease the way in for a new strategic investor. 

According to the latest reports, US retail giant Walmart Inc is right now in advance talks with Flipkart to obtain a controlling stake of more than 51 percent in the Bengaluru-based e-commerce firm at a valuation of at least $18 billion. Flipkart Ltd has purchased shares for $350.5 million form some of its investors. The list of investors include Tiger Global and Accel, according to May 3 regulatory filings from Singapore's Accounting and Corporate Regulatory Authority, quotes News 18.

As the filings show, it also started the process of transforming Flipkart to a private limited company that is changing its name to Flipkart Pte Ltd. Stakeholders in a private limited company are normally bound by a contract and have more adaptability than in a public company.

According to the senior lawyer, typically strategic investors don't like to deal with multiple shareholders because it just becomes more cumbersome. So they very often ask companies to clean up the cap table or consolidate small shareholders.

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