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With the Walmart deal, Flipkart employees to get $125-129 per share for ESOPs

Employees of Flipkart will be able to cash their stock options at the rate of $125-129 per share once the acquisition by Walmart for $16 billion is complete. All the employees will be allowed to liquidate the stock option in three installments, half on the day of closing the deal, 25% a year later and the balance two years after the first liquidation.

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In an email to its employees, Flipkart mentioned that the liquidation of vested Employees Stock Options would be at a price which is reflective of the transaction price and this would be in the range of $125 to $129 per option. The final price will be declared on the date of closure of the transaction, following which, the employees will be able to liquidate their Esops in instalments.

If an employee has 10,000 shares, at the rate of $125 per share, the employee could make INR 8 crore before tax. Flipkart has also cautioned the employees that the repurchase event is contingent on and subsequent to the closure of the transaction with Walmart and the approval of the board of directors. It is expected that the regulatory approvals and the closure of transaction will not take more than 60 to 90 days.

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