Flipkart offers employees USD 125-129 for ESOPs
E-commerce major Flipkart has offered to repurchase ESOPs from employees at a share price ranging from USD 125-129, according to sources.
The offer from the Bengaluru-headquartered company comes close on the heels of US-based retailer Walmart buying close to 77 per cent stake for roughly USD 16 billion.
One of the sources said Flipkart will allow employees -- present and former -- to liquidate part of their vested options.
The transaction price would be in the range of USD 125-129 per option, the person added.
The sources said current employees will be able to vest up to 50 per cent of their stock options now, followed by 25 per cent in the second and third year.
Former employees can vest up to 30 per cent of their ESOPs.
When contacted, a Flipkart spokesperson said the company always works with the employees for their growth and wealth creation and remains committed to that goal.
Flipkart had completed an ESOP repurchase programme worth over USD 100 million buying back shares from over 3,000 past and present employees of the group last year.
In the biggest M&A deal in the booming e-commerce sector, Walmart last week announced buying 77 per cent stake in Flipkart. Its investment includes USD 2 billion of new equity funding that would help Flipkart to accelerate its growth pace amid stiff competition from Amazon, which is also pumping in huge funds into its India operations.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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