Flipkart has already broke several records be it in terms of sales or valuation, now it is going to break record of largest IPO breaking previous benchmark set by Coal India’s $3.4Bn in 2010. Flipkart is experiencing high growth where numbers are changing dramatically by every quarter. The company is eying for an IPO. This listing could value the company at over $30Bn.
Flipkart aims to raise $5Bn through this IPO in US bourses over a span of 18 months. This will be the largest public offering by any Indian business till date as it involves Wall Street mammoths Morgan Stanley, Goldman Sachs and Citigroup along with European giant Deutsche Bank. This listing story is significant for the global investment banks that have hardly made money on Indian companies of late.
Though Flipkart has not officially signed any banker but has worked in doing so as above mentioned have had briefings with founders Sachin Bansal and Binny Bansal along with its largest investor Tiger Global.
The company raised $700Mn last month amping up its valuation to $11Bn. Bankers associated with the discussion have speculated that Flipkart’s offer size could be between $4Bn and $7Bn while the valuation can be anywhere between $25-35 Bn.
Big bank eye this IPO as the company could pay $75-100Mn fees which is around at 1.5-2% of the offer size. Flipkart IPO will seek to raise money for itself and existing investors which include Naspers, Accel Partners, GIC of Singapore, DST Global, Sofina, Iconiq Capital, Morgan Stanley, Steadview, T Rowe Price and Qatar Investment Authority. JustDial also launched its INR 950 Cr IPO in March 2013 after its first attempt in August 2011 did not fructified. The IPO was closed at 15% gain.