Flipkart Secures NCLT Nod to Move Domicile Back to India for IPO Plans

According to various media reports, Walmart-owned online retailer Flipkart has been given permission by the National Company Law Tribunal (NCLT) to move its headquarters from Singapore to India. This move brings the company one step closer to its eagerly awaited public listing on Indian exchanges. The Bengaluru-based online retailer has now applied for central government approval under the Press Note 3 regulations.

The company intends to file the draft papers for its initial public offering in 2026. A media source claims that Tencent, a Chinese investor, owns 5–6% of Flipkart. As a result, the e-commerce company needs permission from the government to integrate its Singaporean parent company with the Indian corporation. It is unlikely to be a significant obstacle, though, as Flipkart is primarily controlled by its US parent. The report also stated that a few weeks earlier, a Singaporean court gave its approval.

Official Process of Moving Business to India

Any foreign investment entering into a domestic company from a nation that shares a land border with India must be approved by the government in accordance with the Press Note 3 regulations, which went into effect in 2020. Walmart paid $16 billion to acquire a 77% share in Flipkart in May 2018. SoftBank, Microsoft, and the Canada Pension Plan Investment Board are among the other stockholders of the retailer.

After the flipback procedure is over, Bengaluru-based Flipkart Internet Pvt Ltd will take over as the main company, housing all activities and subsidiaries, including the logistics firm Ekart and the fashion e-tailer Myntra. At the time of publication, Flipkart has not replied to ET's questions. In April, the re-domiciling process was approved by the company's board of directors. Flipkart secured a $1 billion capital round in May 2024, according to ET, which includes a $350 million investment from Alphabet's Google at a valuation of roughly $35–36 billion.

Recent Performance of Flipkart

After payments, business PhonePe submitted draft documents for a $1.5 billion sale under Sebi's confidential route in September, Flipkart's IPO will be the second public offering from Walmart's India empire. While sales growth has been modest amid a broader downturn in online retail generally, Flipkart group businesses have reduced their losses by cutting expenses. The Flipkart group companies' financial records revealed that losses for Flipkart Internet, its internal logistics division Ekart, and its online travel agency Cleartrip decreased by 2-36% year over year. The fashion and beauty retailer Myntra, which is owned by Flipkart, reported a nearly eighteen-fold increase in earnings in FY25.

Flipkart Internet's revenue increased 14% to Rs 20,493 crore in 2024–25, but its net losses decreased 37% to Rs 1,494 crore. Flipkart's initial public offering (IPO) will come after Meesho, its younger e-commerce competitor, went public on December 10. Dan Neary, a former senior Meta executive, joined Flipkart's board of directors before its plans for an initial public offering.