Walmart’s Flipkart Delays IPO, Seeks to Raise $3B – Report

Walmart’s (WMT) Flipkart is seeking to raise at least $3 billion from investors, according to a Bloomberg report citing confidential sources familiar with the plan.

Flipkart is one of India’s leading e-commerce providers. Walmart purchased a controlling stake in the business in 2018 from SoftBank in a transaction that earned SoftBank approximately $1.5 billion in profit over the space of a year.

SoftBank appears interested in returning as a Flipkart investor. The Japanese conglomerate could invest between $300 and $500 million in the business, according to someone familiar with the matter. Other possible investors include the Abu Dhabi Investment Authority, Singapore’s GIC, and the Canada Pension Plan Investment Board.

Flipkart sells everything from groceries to electronics and home furnishings. The company is targeting a valuation of around $40 billion and plans to raise additional capital ahead of its initial public offering (IPO) expected next year. Flipkart could use the funds for acquisitions or supply chain investments. (See Walmart stock analysis on TipRanks)

Yesterday, Morgan Stanley analyst Simeon Gutman reiterated a Buy rating on Walmart stock with a price target of $160. This implies 13.56% upside potential from current levels.

The analyst noted that while Walmart+ membership has stagnated around 10 million for months, it is not surprising since Walmart is prioritizing  the optimization of the membership experience, rather than growing membership numbers.

Consensus among analysts is a Strong Buy based on 15 Buys and 4 Holds. Walmart’s average analyst price target of $167.24 implies 18.69% upside potential to current levels.

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