Walmart raises possibility of Flipkart IPO

Walmart might take Flipkart public in as early as four years, it disclosed in a US SEC filing on Saturday.

This states that minority investors holding 60% of Flipkart shares "acting together, may require Flipkart to effect an initial public offering at a "valuation no less than that paid by Walmart under the Share Issuance Agreement".

Last week, Walmart announced that it would buy a 77% stake in Flipkart for $16 billion. The remaining 23% will be held by the likes of Flipkart Co-founder and Group CEO Binny Bansal, Tencent, Tiger Global and Microsoft Corp. The deal has to be cleared by India’s anti-trust regulator and is expected to close later this year.

Walmart will initially appoint five Directors to Flipkart's board, two of which will be named by minority shareholders while Bansal will take one board seat, according to the filing. Walmart may at a later date bring in a sixth board member with the approval of the majority of the Flipkart Directors. It could also appoint or replace the Chief Executive and other key executives of group companies in consultation with Bansal and the board.

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