Buzzing stock: Infibeam Inc in the race to buy Snapdeal

Snapdeal, one of the largest players in the e-commerce market is in the process of selling its business. To survive as an independent entity, it would have to cut both majority of jobs and size of its business. Hence the company is planning to sell its business for which its strongest competitor Flipkart and another major e-commerce player Infibeam Incorporation have shown interest in the deal. 

Snapdeal’s largest investor Softbank Group Corporation is pushing the company to sell to Flipkart but as it does not possess 75 percent voting rights, it cannot force the company for the same. On the other hand, co-founders of Snapdeal are pushing its sale to Infibeam Inc., as they can continue to retain their control on the firm post sale.

Infibeam has offered roughly $700 million for the deal and Flipkart has offered $850 million. It is expected by the close sources of Snapdeal that the company may consider Flipkart’s offer, its bid being the highest. 

The management of both the companies i.e. Snapdeal and Infibeam Inc. have not confirmed their say over this matter. 

This deal could turn out positive for Infibeam and help it to expand its base and gain higher market share in the e-commerce market.

Today, its stock opened at Rs 1,271.25 and surged by 2.6 percent to Rs 1,302.20 in the morning session.