Amazon eyes spinoff and local listing Valuation may get impacted due to ongoing CCI probe

E-commerce major, Amazon, is exploring the possibility of spinning off its India operations and listing it, according to industry sources. The company, which is the second largest player in the e-commerce sector, behind Flipkart, has initiated preliminary talks with investment banks to assess the feasibility of such a move, sources added.

According to a report in YourStory, which first broke the story, Amazon has reached out to multiple investment banks in the country and has also engaged with JP Morgan, its Wall Street banking partner.

“Amazon has begun conversations with banking advisors regarding a potential spinoff and local listing in India. Data localisation requirements and the ability to maintain direct inventory are among the key factors driving this consideration,” sources said. “Last week, Amazon’s management, including senior executives from India and the US, held discussions with 8-10 investment banks, but these are still in the initial stages,” the source added.

ALSO READPromoter group to hike stake to 33.47% in SpiceJet 

However, some legal experts told Fe that Amazon is unlikely to get the valuation it may be looking for because of the ongoing investigations by the Competition Commission of India. The fair trade regulator has ordered a probe into Flipkart and Amazon following allegations of malpractices, including deep discounting and tie-ups with preferred sellers on their platforms.

When contacted, an Amazon spokesperson declined to confirm the development, stating that the company does not respond to “rumours and speculations”.

As per current government regulations, e-commerce firms in the B2C segment cannot hold inventory if foreign direct investment in them is 51% and above. They can only act as a platform for independent sellers to retail their products, which is called a marketplace model. They are bound by certain other conditions also. For instance, they are barred from influencing prices, giving preferential treatment, or offering deep discounts selectively through certain sellers.

According to the regulations, marketplaces must provide a level playing field for all sellers through a fair and non-discriminatory treatment of sellers. Pess Note 2 prohibits marketplace e-commerce platforms from owning equity or having control over the inventory of sellers on their platform. If a seller’s inventory is more than 25% sourced from a marketplace entity or its group companies, it will be deemed an inventory-based model.

However,

 » Read More

Related Articles

Ashish Kacholia’s Latest Stock Pick starts with a 2.53% Stake

Thomas Scott India Ltd (TSIL) Thomas Scott (India) Limited formed in October 2010 to acquire Bang Overseas Limited’s Retail Division under the “Thomas Scott” brand. The demerger, effective April 1, 2011, was finalized on August 5, 2011. The company was listed on NSE and BSE in January 2012. With a current market cap of Rs

Nuvama sees 96% upside in PVR Inox

Chhatrapati Shivaji Maharaj played a key role in reviving nationalism and the brokerage firm Nuvama Institutional Equities believes that the movie Chhava, based on his son’s achievements has revived the spark in Indian cinema. Following the stupendous box office collection for Chhaava, Nuvama expects a 96% upside in PVR Inox’s share price.  It has a target of Rs 1,765 on the

NMDC dividend payout: Check record date and 4 key factors that investors need to watch

NMDC has announced its first interim dividend for FY25. As India’s largest iron ore producer rolls out fresh payouts, its stock performance remains key points of interest. Dividend announcement and record date NMDC has declared an interim dividend of Rs 2.30 per share with a face value of Rs 1. The record date for eligibility

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Ashish Kacholia’s Latest Stock Pick starts with a 2.53% Stake

Thomas Scott India Ltd (TSIL) Thomas Scott (India) Limited formed in October 2010 to acquire Bang Overseas Limited’s Retail Division under the “Thomas Scott” brand. The demerger, effective April 1, 2011, was finalized on August 5, 2011. The company was listed on NSE and BSE in January 2012. With a current market cap of Rs

Nuvama sees 96% upside in PVR Inox

Chhatrapati Shivaji Maharaj played a key role in reviving nationalism and the brokerage firm Nuvama Institutional Equities believes that the movie Chhava, based on his son’s achievements has revived the spark in Indian cinema. Following the stupendous box office collection for Chhaava, Nuvama expects a 96% upside in PVR Inox’s share price.  It has a target of Rs 1,765 on the

NMDC dividend payout: Check record date and 4 key factors that investors need to watch

NMDC has announced its first interim dividend for FY25. As India’s largest iron ore producer rolls out fresh payouts, its stock performance remains key points of interest. Dividend announcement and record date NMDC has declared an interim dividend of Rs 2.30 per share with a face value of Rs 1. The record date for eligibility

Stock Market Live Updates: Nifty, Sensex set to open higher; Asian markets trade in green

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Indian markets are set to open on a positive note today, taking cues from early trends in GIFT Nifty. Asian stocks also kicked off the day in the green, reflecting optimism from Wall Street’s overnight rally. Major indices across Japan, South Korea, and Australia

How will markets open today? Fed meeting, soaring gold rate and 6 more cues to watch

Markets are gearing up for a positive start today, with early signals from Gift Nifty pointing upwards. Global factors, including Wall Street trends and key economic updates, will set the tone for the day. On March 17, Indian stock markets ended on a strong note, with the Sensex rising 0.46% to 74,169.95 and the Nifty