After the successful IPO of South Korean ecommerce giant Coupang (NYSE: CPNG) last month, Flipkart may be the next company in the ecommerce pipeline. On April 6, the Indian ecommerce company created an "IPO team" and may go public in the 4th quarter of 2021.
Interested in becoming an investor in what may be the next big ecommerce company to list in the U.S.? Keep reading to learn how to buy stocks.
When is the Flipkart IPO Date?
The exact IPO date is still up in the air, but the company has indicated that Flipkart may IPO by the 4th quarter of 2021. However, Flipkart may opt to list outside of the United States.
Flipkart Financial History
Flipkart has been around since 2007 and is headquartered in Bangalore, India. Flipkart has continued acquiring company after company since its founding, including the purchase of Ebay’s India subsidiary in 2017. In 2018, Walmart (NYSE: WMT) announced that they had acquired a 77% stake in Flipkart for $16 billion. As of today, Flipkart sells over 150 million products to a user base that tops 300 million people.
Flipkart Potential
Although the COVID-19 pandemic seems to enter its final innings, the widespread adoption of ecommerce worldwide may stick around. Furthermore, India has a population well over 1 billion and Flipkart controls around one-third of the market share in India. Assuming we do not see a marketwide correction in 2021, look for the Flipkart IPO to attract a lot of investor interest.
How to Buy Flipkart IPO Stock
Learn more about how you can buy Flipkart when the IPO finally opens.
Step-by-Step Guide:
- Pick a brokerage.
First, pick a brokerage to trade with. By now, most online brokerages will let you trade commission-free. Some things to consider before picking a brokerage include your investing goals and how much capital you will have to invest.
Investing for the first time? It may be wise to pick a brokerage that offers paper trading, as this will allow you to practice first. Don't forget to look into any promotional offers that the various brokerages offer. You may even be able to get bonus trading funds or even a free stock. - Decide how many shares you want.
Once you set up your account, you next need to decide how many shares of Flipkart you want to buy. Decide how much money you want to risk on this trade. You should prepare to lose all of your investment, so remember to diversify your stock holdings.
Considering that Flipkart will be a brand new IPO, it may be a good idea to be more conservative than normal. Don’t be too aggressive trying to build your position in Flipkart and always keep in mind when you can take profits or losses. - Choose your order type.
Once you have settled on a share number, you need to choose which order type to use. You can choose from many order types for different trading scenarios.
If you opt to use a market order, your brokerage will execute your order instantaneously at the National Best Bid and Offer price (NBBO). If you use a limit order instead, then your broker will not fill your order until shares will hit your specified price or better. - Execute your trade.
The last step: Execute your order. All you need to do is hit the "buy" button on your brokerages platform and your broker will do the rest. Once your order executes, you will see your shares of Flipkart appear in your brokerage account.
Best Online Brokers
Not sure where you’d like to begin your search for the right broker? Consider a few of our top choices below.
Flipkart Restrictions for Retail Investors
Assuming that Flipkart does end up deciding to IPO on a U.S. exchange, then no restrictions exist for retail investors. However, if Flipkart opts to list outside of the U.S., then restrictions on retail investors may pose a challenge.
Flipkart Pre-IPO
As of now, it seems quite difficult to buy shares of Flipkart pre-IPO. However, you can buy shares in numerous other attractive companies at the pre-IPO stage by checking out ClickIPO.
Will Flipkart be the Amazon of India?
Every time a new ecommerce company debuts on the U.S. markets, it's immediately stacked up against Amazon (NASDAQ: AMZN). As of today, Amazon is valued at over $1.5 trillion, making it a behemoth to compete against. However, with the backing of Walmart (NYSE: WMT), Flipkart may compete with Amazon in India and beyond.