A key regulatory clearance has moved Flipkart closer to restructuring its corporate base ahead of a potential public listing. The e-commerce company, owned by Walmart, has received approval from the National Company Law Tribunal to shift its domicile from Singapore to India.
With the approval in place, Flipkart is now a step closer to filing its draft papers in the next calendar year. The principal bench of the tribunal cleared the proposal through an order dated December 12.
“In light of the foregoing facts and discussion, particularly the positions taken by the relevant authorities, and upon considering the approval granted by the members and creditors of all the transferee and transferor companies to the proposed scheme, there appears to be no impediment to sanctioning the scheme,” the bench said while approving the proposed “Scheme of Merger by Amalgamation”.
The approval allows Flipkart to begin a phased consolidation of its group structure. Under the scheme, several group entities will be merged into Flipkart Internet Private Limited. In the first phase, 7 transferor companies, including Flipkart Health, Flipkart Marketplace, Myntra Holdings, Flippay, Quickroutes International, and others, will be merged into the transferee company, subject to approvals from courts in Singapore. In the next phase, Flipkart Private Limited will be merged into Flipkart Internet.
Flipkart said the restructuring will simplify its holding structure, improve management efficiency, and reduce costs. “The scheme will result in simplifying and unifying the holding structure of the group, with reduction of shareholding tiers and also demonstrate the direct commitment to, and engagement of, shareholders in India… The Scheme will result in efficient management and decision making by eliminating duplicate corporate procedures in Singapore due to a streamlined holding structure and simplifying inter company transactions.”
In April, Flipkart had secured internal approvals to relocate its domicile to India. At the time, a company spokesperson said, “The 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.”
Flipkart’s proposed public offering would mark the 2nd listing by a Walmart owned entity after PhonePe. PhonePe shifted its domicile to India in October 2022 and filed its draft initial public offering papers through the confidential pre filing route in September this year.
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