Amazon Eyes Spinoff, IPO of India Biz

E-COMMERCE MAJOR AMAZON is exploring the possibility of spinning off its India operations and listing it, according to industry sources.

- RAGHAV AGGARWAL

The company, which is the second-largest player in the e-commerce sector after Flipkart, has initiated preliminary talks with investment banks to assess the feasibility of such a move, the sources said.

According to a report in YourStory, 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 advisers 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," one of the 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.