Amazon and Samara Capital are looking to sell 20 per cent stake in More Retail ahead of share sale via initial public offering (IPO) for a approximately $2 billion, The Economic Times reported citing sources.
Amazon and Samara Capital have approached family offices and domestic capital investors, The Economic Times reported citing sources. The report of stake sale by Amazon and Samara Capital comes 12-18 months ahead of the IPO.
The retail chain which was once part of the Aditya Birla Group was acquired by Amazon-Samara in 2019 for an estimated value of $600 million.
"There have been discussions about diluting 10-20 per cent in More to attract domestic investors before the planned IPO. It is likely to be a 15 per cent sale to investors,” sources told ET.
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People aware of the matter told ET that Amazon is working to further integrate More Retail stores with its online grocery offering Amazon Fresh. This is being discussed in order to boost the growth plans of More amid increased online adoption for grocery and essentials.
In New Delhi and Bengaluru, Amazon Fresh has tested store pickups for its Amazon Fresh grocery orders, they said.
Witzig Advisory Services is the holding company of More Retail houses, in which Samara owns 51 per cent stake and Amazon owns the rest. The investment is part of Amazon’s plan to develop a significant omnichannel strategy for its grocery business in India, while also expanding its dominant online presence.
