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E-commerce giant Flipkart may be gearing up to register itself with Nasdaq in the US

Flipkart is
believed to be working on an international listing with Nasdaq in the US. 
According to a Business
Standard
report, experts believe that before
an initial public offering (IPO), expected in 12 to 18 months, the online
marketplace must strengthen its financials and organisational structure.

Flipkart is
believed to be working on an international listing with Nasdaq in the US. 
According to a Business
Standard
report, experts believe that before
an initial public offering (IPO), expected in 12 to 18 months, the online
marketplace must strengthen its financials and organisational structure.

“The choice
of stock exchange will be a challenge, as listing in India is fairly impossible
because of issues such as profits and the traditional definition of promoter,
etc,” Harish H V, Partner at Grant Thornton told Business Standard. He
added Nasdaq seemed the best choice, considering it was known for listing
technology companies and the fact that it was much easier to list there.
Flipkart might consider Singapore, too, owing to the ease of listing norms in
that country.

For public
issues of companies without a three-year ‘profitability’ record, the Securities
and Exchange Board of India (SEBI) had, in 2012, reduced the retail investor
quota from 35 % to 10 % of the issue size. The move, aimed at protecting retail
investors from IPOs of loss-making companies, limited the participation of
small investors in successful IPOs such as those of Just Dial and Snowman
Logistics.

Business
Standard reports, citing analysts, Flipkart should build a leadership team with
global resonance. According to Investopedia, Nasdaq is similar to an
“exclusive club”, one for which companies with “solid
history” and “top-notch management” alone are considered.

Recently, the
company announced the appointment of former Google Executive Punit Soni as
Chief Product Officer. It has also appointed former McKinsey Director Saikiran
Krishnamurthy as Chief Operating Officer (COO) of its commerce platform.

Recent media
reports have claimed Flipkart is cutting costs to prepare for an IPO, the
company has denied this. A company spokesperson told Business Standard,  “Cost optimisation is an ongoing exercise
for any company and we are no different. In fact, the company is focused on
growth and continues to hire for technology and supply-chain in a big
way.”

 

 

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