Daijiworld Media Network - New Delhi
New Delhi, Dec 15: E-commerce major Flipkart, owned by US retail giant Walmart, has received approval from the National Company Law Tribunal (NCLT) to shift its domicile from Singapore to India, marking a key step towards its proposed initial public offering.
The principal Bench of the NCLT, in an order dated December 12, sanctioned the ‘Scheme of Merger by Amalgamation’, clearing the way for restructuring and consolidation of Flipkart’s group entities in India. With this approval, Flipkart moves closer to filing its draft IPO papers in the next calendar year.
“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, there appears to be no impediment to sanctioning the scheme,” the tribunal observed.
Under the approved scheme, several group companies — including Flipkart Health, Flipkart Marketplace, Myntra Holdings, Flippay and Quickroutes International — will be merged in phases into Flipkart Internet Private Limited, subject to approvals from courts in Singapore. Subsequently, Flipkart Private Limited will be merged into Flipkart Internet.
The company said the restructuring would simplify its holding structure, reduce multiple layers of shareholding and lead to more efficient management and cost savings. Flipkart noted that the move would eliminate duplicate corporate procedures and streamline inter-company transactions.
In April, Flipkart had secured internal approvals to relocate its domicile to India. A company spokesperson had earlier described the shift as a “natural evolution”, aligning the holding structure with Flipkart’s core operations, growth ambitions and the potential of the Indian economy.
Flipkart’s public offering, when it happens, will be the second IPO by a Walmart-owned entity after PhonePe, which shifted its domicile to India in 2022 and filed draft IPO papers earlier this year.