News reports just six months ago had said Flipkart is eyeing an IPO (initial public offering) at a valuation of $45-50 billion. In some cases, using the SPAC route may result in slightly lower valuations. However, in a SPAC listing, there are no conventional road shows by the bankers, which makes the process of price discovery challenging (because of covid, road shows have been tough)." Meanwhile, a Reuters report has said that a traditional stock market listing is much more likely for Flipkart as compared to a SPAC listing. Either way, the company may need to settle for slightly lower valuations now, given the recent correction in tech stocks.

Source: Mint March 07, 2021 18:33 UTC