Samara, Amazon-backed More Retail stake sale gets lukewarm response

Samara Capital’s plans to sell part of its stake in More Retail, a joint venture with American retail major Amazon, has received lukewarm response from potential investors. This is owing to valuation mismatch and losses of the grocery retail company.

Bankers said Samara was looking to sell 20 per cent stake in the joint venture at a total valuation of $2 billion but the response from potential investors was inadequate.

While Samara owns 51 per cent stake in the company, the rest is with Amazon. More Retail was also planning to launch an initial public offering (IPO) after the promoters planned to sell part of their stake.