According to its regulatory filing the Indian e-tailor major Flipkart completed another round of buyback of its shares valued at $350 million (Rs 2,275 crore) from its investors. Meanwhile the Chennai-based business intelligence platform Paper.vc, which sourced the filing from the Singapore's Accounting and Corporate Regulatory Authority (ACRA), said Flipkart had bought over 18 lakh preferential shares from its institutional investors like Tiger Global, Accel and Naspers.
The market analyst told the buyback also paves way for the Singapore-registered Flipkart to become a private entity and sell its stake to bidders like Walmart at higher value. Accordingly "The company's valuation is estimated to be $18 billion, which is based on the buyback price paid to investors, including premium”.
Previously this week, Flipkart’s biggest rival in India Amazon also made a
formal offer to buy 60% stake in the eCommerce major and moreover the report
states that Binny Bansal is likely to sell about a tenth of his shares in
Flipkart. However, it is not known how much Sachin Bansal, who currently holds
5.5% stake, will sell.
