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

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

Stocks To Watch: From Tata Motors to IREDA- Here’s a list of 10 stocks in news today

Every day, there is a lot happening in the world of business such as companies announcing big moves, stocks reacting to market trends, and new policies shaping industries. With so much information coming in, it’s easy to lose track of what really matters. To cut through the noise, here are the top stocks in focus

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

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

Stocks To Watch: From Tata Motors to IREDA- Here’s a list of 10 stocks in news today

Every day, there is a lot happening in the world of business such as companies announcing big moves, stocks reacting to market trends, and new policies shaping industries. With so much information coming in, it’s easy to lose track of what really matters. To cut through the noise, here are the top stocks in focus

Physics Wallah confidentially files for $500-mn IPO

Edtech giant Physics Wallah has confidentially filed for an initial public offering (IPO) that could raise as much as $500 million, according to a report by IFR. The company in October 2024 said it might launch a $400-500-million IPO in 2025. If the public issue is launched, Physics Wallah will be the first pure-play edtech

FY25 advance taxes grow 14.6%; Q4 rise at just 2.4% 

Advance tax collections from the corporate sector, other firms and individuals in the current fiscal stood at Rs 10.45 lakh crore as on Sunday, up 14.6% on year. In the corresponding period of last fiscal, these collections — a proxy of corporate profitability and the state of the economy — stood at Rs 9.11 lakh