Tata to acquire majority stake in BigBasket, 1mg

As the Tata Group gets into the final stages of the deal with BigBasket and investors (Alibaba, Abraaj Group, and other smaller stakeholders), it comes to a step closer to its eventual goal to release an Initial Public Offering (IPO) by the next-to-next financial year.

Tata Group will begin at first by putting in an initial capital of $200 million, and then the bigger $1.2 billion agreement, which will brand Tata as a majority stakeholder with a total 60% share, will consist of an amalgamation of different levels of sale of shares.

Advertisement

With the Tata Group also purchasing the share of investors Alibaba, which owns 27.58 per cent share, and Abraaj Group, which owns 18.05 per cent share, among other smaller investors, at the end of the deal BigBasket will be valued at a massive $1.6 billion.
Tata will also be possessing the first right to refusal for the shares of investors who would be wanting to sell.

Apart from this deal, Tata is also in works to acquire a majority stake of 55 per cent in an online pharma company ‘1mg’ through a subordinate negotiation of between $200-250 million.

Both the deals come as a result of Tata’s scheme to create a digital service app, which would be acting as an online supermarket with large varieties of products. Last year, Tata Group Chairman Natarajan Chandrasekaran had revealed that the Tata Group is planning to create the said super app which would make several services like food and grocery ordering, fashion and lifestyle, consumer electronics and durables, insurance and financial services, education, and healthcare very accessible.