Here's Why the Flipkart IPO Is a Brilliant Move for Walmart

Flipkart is planning an initial public offering (IPO) for the fourth quarter this year.

According to Bloomberg, the leading Indian e-commerce company, which is 77% owned by Walmart (NYSE: WMT), is seeking a valuation that could top $35 billion. Based on the $16 billion Walmart paid in 2018, which valued Flipkart at $21 billion, that $35 billion price tag would represent a gain of nearly 70% in Flipkart's valuation in just three years.

Walmart had been considering taking the company public through a special purpose acquisition company (SPAC) but is opting for the more traditional IPO route. The offering is expected to be listed in the U.S., but that decision and several others are still waiting to be finalized. Still, taking Flipkart public is a smart move for Walmart for a number of reasons. Let's take a closer look at why. 

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Source Fool.com