The employees of this Indian giant e-commerce are very happy after Wal-Mart completes the investment process of Flipkart $ 16 billion (about 1, 15 thousand rupees). Some employees of the company will become millionaires in one stroke. Flipkart has announced in a letter to its existing employees that they can sell their stake in Employee Stock Ownership Plans (ESOPs) from 126 to 128 dollars per unit. ESOP is an Employee-Owner program, under which employees get shares in the company.
Walmart has to purchase 62,42,271 shares of Flipkart’s 1,19,47,026 shares of ESOP. Retail giant Wal-Mart has given this information to the US Securities and Exchange Commission.
Walmart will buy ESOPs worth $ 800 million (about Rs 5,770 crore) of Flipkart employees. Flipkart’s total ESOP is approximately 1.5 billion (about 10,818 million) rupees.
According to report on September 8 that Walmart could buy shares of Flipkart’s $ 80 million worth of shares. However, current employees of Flipkart will be allowed to sell their 50% shares under ESOP. After a year, they will be able to sell 25 percent additional shares and after 2 years they can also sell the remaining 25 percent of the shares.
In December last year, Flipkart bought ESOP shares worth $ 100 million (about Rs 721 crore) of existing and former employees of 3,000 of the group’s fashion company Myntra, Jabong and payment company Phonepe.