Flipkart plans domicile shift
Flipkart, India's largest e-commerce company, said it will shift its domicile to India from Singapore ahead of a potential listing.
The company, which is around 80.5% owned by Walmart, did not say it is planning an IPO, but analysts have been expecting one given the buoyant Indian equity capital market, which has encouraged several foreign-registered Indian new economy companies to return home ahead of a listing.
India's equity capital market saw record volume of US$72bn in 2024, according to LSEG data.
Last year Flipkart was valued at US$36bn and a minimum 10% free float could translate into an issue size of around US$3.6bn – though local media reported the company is seeking a valuation of US$60bn–$70bn. Hyundai Motor India's Rs278.7bn (US$3.3bn at the current exchange rate) IPO holds the record for India's largest IPO.
"Flipkart has shared its intention to relocate its holding company from Singapore to India. This move represents a natural evolution, aligning our holding structure with our core operations, the vast potential of the Indian economy and our technology and innovation-driven capabilities to foster digital transformation in India," a company spokesperson said.
"As a company born and nurtured in India, this transition will further enhance our focus and agility in serving our customers, sellers, partners, and communities to continue contributing to the nation's growing digital economy and entrepreneurship."
According to local media, Flipkart's share of Indian e-commerce stood at 35% in 2024 compared with Amazon India's 32%.
Another Walmart-backed company, payment company Phone Pe, is working with Citigroup, JP Morgan, Kotak and Morgan Stanley on a domestic IPO of at least US$1bn after it moved its domicile from Singapore in October 2022.
Others returning home include payment systems provider Pine Labs, online stockbroker Groww, education technology company Eruditus, payment company Razorpay, online credit provider KreditBee, online grocer Zepto and e-commerce company Meesho.
Razorpay and Meesho are domiciled in the US and the others in Singapore.
Fast-growing Indian companies began to domicile or register abroad around a decade ago in a process know as "flipping", as locally domiciled companies are not allowed to list overseas. This entailed transferring capital, intellectual property and data to an overseas entity.
The benefits included lower corporate taxes for those domiciled in Singapore and a relative ease and flexibility to operate, as well as the potential to list in more liquid markets. However, with the Indian IPO market booming, "reverse flipping" is gaining ground.