Published
May 2, 2018
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Flipkart embarks on plan to go private

Published
May 2, 2018

India’s e-commerce giant Flipkart is working to regain its private limited company status in Singapore and, as part of this, has set aside 400 million US dollars (approximately 2,661 crore rupees) for buying back shares.

Flipkart is working to regain its private limited company status in Singapore - Flipkart- Facebook


Ahead of the planned investment from America’s Walmart, Flipkart is seeking to once again be a “private limited” company, as reported in the Economic Times. To qualify for this status, the business must have under 50 shareholders and so is buying back shares from small investors in order to bring its total down.

The e-commerce platform Flipkart is currently registered as a public company in Singapore and has around 145 shareholders (people and businesses) according to Singapore’s Accounting and Corporate Regulatory Authority. Major shareholders include SoftBank and Tiger Global who each have a 20 percent stake but it will be smaller shareholders that Flipkart will try to redeem shares from.

One reason to become a private company ahead of a Walmart investment is that public companies are more regulated in Singapore. Talks with Walmart are at an advanced stage and the American business is expected to pick up up to an 86 percent stake in Flipkart. The deal, however, is expected to see Flipkart remain as an independent company and retain its current top management.

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