Walmart’s Flipkart reportedly looking at going public through SPAC merger

Flipkart, Walmart’s Indian e-commerce unit – is reportedly looking at listing in the US via a merger with a special purpose acquisition company (SPAC), according to a Bloomberg News report.

Flipkart is said to have contacted several SPACs in a deal that could see the unit valued at $35bln. Deliberations are at an early stage and Flipkart could still explore other options, the sources told Bloomberg.

Walmart (NYSE:WMT) acquisition
Walmart acquired a majority stake in Flipkart back in 2018 for $16bln after a long drawn out bidding war with Amazon (NASDAQ:AMZN). There was a caveat in the deal that Flipkart’s minority shareholders may require Flipkart to effect an IPO following the fourth anniversary of the closing of the transaction at a valuation no less than that paid by Walmart. If the SPAC merger goes ahead, then the current minority shareholders need not worry.

Other Indian SPAC deals
Last week, Indian renewables company ReNew Power agreed to merge with blank-cheque company RMG Acquisition Corp. II in a deal valued at $8bln. Separately, Grofers – an Indian online grocer – is reportedly considering a plan to go public in the US via merger with a SPAC.

“As many as 10 Indian companies could go public through SPAC deals before the end of the year,” said Nomura Holdings’ head of investment banking for India Utpal Oza in a recent interview.

“Wherever you’ve got businesses which have caught the fancy of international investors especially in sectors such as renewables, tech or e-commerce, where the corporate structure enables it to be merged quite easily, you will see SPAC activity.”