After raising $2 billion last year, Indian online retailer Flipkart could be planning on listing on the New York Stock Exchange to raise another $5 billion. Also Read - Flipkart Big Diwali Sale starts October 29, promises heavy discounts on mobiles and TVsAlso Read - Facebook will now make money from WhatsApp's in-app purchases
Now reports have surfaced that the e-commerce giant has rolled up its sleeves and have amped discussions with huge investment banking firms like Morgan Stanley, Goldman Sachs, Citigroup and Europe’s Deutsche Bank to help them raise a minimum of $5 billion through an Initial Public Offering (IPO) listing in New York Stock Exchange (NYSE). Also Read - Flipkart to acquire Rs 1,500 crore worth stake in Aditya Birla Group's Fashion retail
This would be the largest public offer by any Indian company till date. The current largest raised amount is by Coal India in its maiden offering of $3.4 billion in 2014. After the IPO, Flipkart will be valued at $30 billion approximately.
The report states that neither the investors concerned, nor Flipkart chose to comment on the story. Expected in 18 months, this IPO will have Flipkart paying nearly $100 million in fees to these global investment banks. This hefty fee is one of the key reasons why these banks, who haven’t made any money on Indian companies recently, are now looking to work with Flipkart.
“We are likely to see Flipkart listing in the next six quarters (or 18 months), and not before it. The level of engagement we are having with the company founders and key investors has moved up significantly,” a senior banker, who spoke on the condition of anonymity told the Times Of India.
Last month, Flipkart managed to raise $700 million in third funding round. The biggest new investor was Qatar Investment Authority which has picked up a $150 million stake. Many new investors participated including Greenoaks Capital, Steadview Capital and T Rowe Price Associates. Old investors like DST Global, GIC, ICONIQ Capital and Tiger Global also participated. The December funding round valued the company at $11 billion.