GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Walmart Loses $10 Billion in Market Value After Flipkart Takeover Announcement

In the biggest deal in the fast-growing e-commerce space, Walmart on Wednesday said it is buying 77 per cent stake in Flipkart for about USD 16 billion and it would give the retailer access to Indian e-commerce market that is estimated to grow to USD 200 billion within a decade.

PTI

Updated:May 9, 2018, 10:23 PM IST
facebookTwittergoogleskypewhatsapp
Walmart Loses $10 Billion in Market Value After Flipkart Takeover Announcement
The logos of Walmart and Flipkart. (New18 creatives)
New York: Walmart shares slumped more than 4 per cent in the morning trade on Wednesday wiping off nearly USD 10 billion from its market capitalisation, hours after the retail giant announced USD 16 billion worth Flipkart deal.

The shares took a beating amid concerns that the deal could impact profits of Walmart. The American retail major's shares fell over 4 per cent on the New York Stock Exchange at around USD 82.13 apiece.

At this level, the market capitalisation was more than USD 242 billion, which is way lower than Tuesday's closing level. At Tuesday's closing price of USD 85.74 per share, Walmart had a market capitalisation of little over USD 253 billion.

In the biggest deal in the fast-growing e-commerce space, Walmart on Wednesday said it is buying 77 per cent stake in Flipkart for about USD 16 billion and it would give the retailer access to Indian e-commerce market that is estimated to grow to USD 200 billion within a decade.

The deal values Flipkart at USD 20.8 billion. "If the transaction were to close at the end of the second quarter of this fiscal year, Walmart expects a negative impact to FY19 EPS (Earnings Per Share) of approximately USD 0.25 to 0.30, which includes incremental interest expense related to the investment.

"In FY20, as we look to accelerate growth in this important market, Walmart anticipates an EPS headwind in total of around USD 0.60 per share," Walmart said in a release.

Also Watch

| Edited by: Ahona Sengupta
Read full article
Most Active
Company Price Change %Gain
Reliance 920.80 +4.95 +0.54
Vedanta 251.80 +1.20 +0.48
TCS 3,585.80 -17.90 -0.50
United Spirits 3,250.30 +131.15 +4.20
SBI 266.95 -1.55 -0.58
Company Price Change %Gain
HDFC 1,820.00 +13.95 +0.77
Just Dial 507.40 +42.55 +9.15
Avenue Supermar 1,497.45 +93.25 +6.64
PC Jeweller 192.45 +4.40 +2.34
United Spirits 3,251.00 +128.95 +4.13
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,172.10 +60.30 +5.42
Hindalco 245.50 +11.40 +4.87
IOC 163.45 +7.55 +4.84
ONGC 175.45 +7.75 +4.62
HPCL 295.20 +11.95 +4.22
Company Price Change %Gain
ONGC 175.35 +7.70 +4.59
Tata Steel 567.20 +18.80 +3.43
Yes Bank 339.45 +8.95 +2.71
Adani Ports 379.90 +8.70 +2.34
IndusInd Bank 1,914.75 +43.55 +2.33
Top Losers
Company Price Change %Gain
Coal India 275.60 -4.50 -1.61
Tech Mahindra 702.75 -8.60 -1.21
Bharti Infratel 314.85 -3.50 -1.10
ITC 272.30 -2.55 -0.93
ICICI Bank 295.65 -2.05 -0.69
Company Price Change %Gain
Coal India 276.05 -3.80 -1.36
ITC 271.95 -2.85 -1.04
SBI 267.00 -1.50 -0.56
TCS 3,589.45 -15.35 -0.43
ICICI Bank 296.50 -0.75 -0.25