Flipkart's former employees can sell 30% of their Esops for $125-129
The company has reportedly kept aside $500 million for what will be the largest repurchase in the Indian startup ecosystem. It will take place upon closure of the deal and approval of the board of directors.May 15, 2018 | comments ( 0 ) |
Flipkart will buy back its 30% of its former employees’ vested Esops (Employee stock ownership plan) at a share price ranging from $125-129, the Bengaluru-headquartered company informed some of its former employees in an email.
As part of US retail giant Walmart’s $16 billion investment in the online retailer, a large number of people associated with the e-commerce company is set to benefit once the deal closes in FY19, including Flipkart’s previous employees.
“30% of the vested options can be liquidated on or about the date of the closing of the proposed transaction,” read the email. “The liquidation of options would be at a price reflective of the transaction price, in the range of $125-129 per option.”
Interestingly, Walmart’s current share price is $83.38.
ET was the first to report on Friday that Flipkart may allow its former employees to exercise an option of cashing out just 30% of their vested stock options. On the other hand, employees currently working with the online retailer may be allowed to liquidate 50% of their vested Esops during the first year and cash out 25% each in the second and third year, say sources.
The company has reportedly kept aside $500 million for what will be the largest repurchase in the Indian startup ecosystem. It will take place upon closure of the deal and approval of the board of directors.
Prior to this, Flipkart has organised a large-scale Esop repurchase programme during October last year when the company repurchased stock options at $85.2 where the current employees were allowed to sell 25% of their vested options while former employees were asked to limit it to 10%.
- Patanjali looks to open Pardan Stores before diwali
- Evok looking to open 25 franchise stores
- Bonn Group aims Rs 1,000 cr turnover over next three years
- BigBasket acquires majority stake in three startup ventures
- Faasos plans to raise funds for overseas expansion
- Sachin Tendulkar backed Universal Sportsbiz raises Rs 100 crore
- Liberty Lifestyle to target millennials for luxury perfume range
- Nestle eyes 3 per cent sales growth
- Gunjan Soni and Ananya Tripathi to exit Jabong-Myntra by December
- Foodpanda acquires Holachef