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Friday, May 4, 2018

Flipkart buys back shares worth $ 350 million; Shekhar Kirani, IDG Ventures left the company




FLIPKART bought back  shares from several of  stakeholders for $ 350 million on Thursday, according to company intelligence company Paper.vc.

Outgoing investors included names such as Shekhar Kirani, Deep Nishar, IDG Ventures and a large number of pension funds.

Tiger Global, Accel, Microsoft, Naspers and Ebay remain at the Flipkart bounding table.

The goal is to regain the status of a limited liability company in Singapore before investing in Walmart.

According to Paper.vc, Flipkart has so far about 150 interested parties. Under the rules, Flipkart was forced to reduce its shareholder to less than 50 years to regain the status of a private limited company in Singapore.

The company is in the final stages of negotiating with Walmart for the acquisition, even with reports that Amazon is preparing a counter offer.

The agreement is expected to take Walmart to acquire a controlling stake of around 55 percent in a Bengaluru-based company for an appraisal of about $ 20 billion.

The last flipkart raised about $ 2.5 billion in August. This round saw the entry of Softbank Japan as an investor in the company. Flipkart has therefore announced that it has a cash surplus of $ 4 billion in its balance sheet.

While it is assumed that Walmart may hold top management after the acquisition, it is also said that the two founders - Sachin Bansal and Binny Bansal - are trying to sell all their shares in the company.

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