Walmart said it could take Indian e-commerce company Flipkart public four years after the deal concludes, the retail giant said in a filing.

The initial public offering would be at a valuation at no less than Walmart's investment in Flipkart, which values the company at about $21 billion, the company said.

Minority shareholders of Flipkart holding in aggregate about 60% of Flipkart's shares, could require the company to effect an IPO four years after the Walmart-Flipkart transaction closes, Walmart said in a filing with the US Securities and Exchange Commission.

Walmart also said it can appoint or replace the chief executive officer and other principal executives of the Flipkart group of companies.

The appointments would be subject to certain consultation rights of the board and the founder.

Non-Walmart affiliated directors serving as Walmart-appointed directors will also have certain veto rights over specified decisions relating to Flipkart’s business and activities.

Walmart agreed to buy a roughly 77% stake in Indian e-commerce company Flipkart for $16 billion, in what is the country’s biggest foreign direct investment to date.

The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp.

The deal was the US retail giant’s boldest attempt yet to take on Amazon online, as well as giving it access to a booming market it has so far failed to crack.

The deal is expected to close later this calender year.

Read our comprehensive coverage of the deal here

First Published:May 12, 2018 10:28 AM IST