Walmart is viewing Flipkart as a long-term bet that may take years, or even decades, to yield excellent financial returns. Photo: PTIBengaluru: A Flipkart IPO is unlikely to happen for many years to come, as Walmart Inc. will have to invest heavily to make its $16-billion acquisition work. Walmart has told Flipkart’s leadership team to not worry about an IPO anytime soon, according to two people familiar with the matter. Walmart is viewing Flipkart as a long-term bet that may take years, or even decades, to yield excellent financial returns, these people said. However, there is an important clause that can prevent minority shareholders from forcing an IPO—if after four years, Walmart owns over 85% of Flipkart, minority shareholders of the latter will lose their veto rights on business decisions and transactions at Flipkart.

Source: Mint May 14, 2018 02:37 UTC