Flipkart to spend $500 for repurchase of ESOPS
Indian e-commerce major Flipkart has earmarked $500 million (approx Rs 3391 crore) to repurchase ESOPS (Employee stock ownership plan) from its current and former employees.
Flipkart will buy out stocks from employees at a share price ranging from $125-129 as it looks to pass on the benefits of the $16 billion deal with US retail giant Walmart to its employees.
“30% of the vested options can be liquidated on or about the date of the closing of the proposed transaction,” read the email accessed by Economic Times. “The liquidation of options would be at a price reflective of the transaction price, in the range of $125-129 per option."
Flipkart employeers can liquidate 50 percent of their Esops while former employees will be restricted to cash out just 30% of their vested stock options under this new repurchase programme.
Flipkart had spent around Rs 642 crore (approx $100 million) to buy back stocks from current and former employees under the programme last year. The latest repurchase programme of $500 million is expected to be the biggest till date in the start up space in India.
Last month, Flipkart had bought back $350 million worth of shares from its investors in a move to convert its Singapore-incorporated company to a private limited firm.
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