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Former Flipkart Staff Seek Inclusion in $2 Billion ESOP Buyback
Some people who used to work at Flipkart own stock options, which can give them a share in the company.
They want Walmart to let former workers sell those options before Flipkart goes public.
A petition aims to bring together 20,000–30,000 former employees from Flipkart and related companies.
The workers say they do not know when an IPO will happen and worry they could wait a long time.
Some former executives say they have held their options for as long as 15 years.
They say the petition is a request to talk, not a legal claim.
Walmart’s legal counsel reportedly said former workers would be considered as part of liquidity in an IPO, without making a specific commitment.
Flipkart says an IPO is part of its plans, but it will happen when the timing is right.
Former Flipkart executives launched a petition on October 10 seeking inclusion of 20,000–30,000 former employees in a planned ESOP buyback.
The petition covers former staff of Flipkart and group companies including Myntra, Cleartrip, ANS Commerce, Shopsy and Super Money.
The former employees say the lack of a clear IPO timeline could leave them waiting years to access the value of vested stock options.
A group of eight former senior executives previously asked Walmart’s board to buy their stock options; they said some had held them for as long as 15 years.
Flipkart says an IPO remains part of its strategic roadmap, but it will proceed when the company is ready; Walmart did not respond to the petition report’s queries.
- Who
- Former Flipkart executives and other former employees of Flipkart group companies; Walmart is the company they are petitioning.
- What
- They are seeking inclusion of about 20,000–30,000 former employees in a planned $2 billion employee stock-option buyback.
- Where
- The petition concerns Flipkart and its group companies in India.
- When
- The petition was launched on October 10; an earlier appeal to Walmart’s board was reported on October 9.
- Why
- The former employees want a way to liquidate vested stock options amid uncertainty over when Flipkart’s IPO will take place.
Former employees
Walmart and Flipkart
Access to stock-option value
Former employees
Former employees want Walmart to buy out their vested options, saying uncertain IPO timing could leave them waiting years to liquidate their holdings.
Walmart and Flipkart
Walmart’s legal counsel reportedly said former employees would be considered as part of liquidity in a Flipkart IPO, but made no specific commitment. Flipkart says it will pursue an IPO when the timing is right.
Key facts
- Proposed buyback
- $2 billion in employee stock options
- Petition target
- About 20,000–30,000 former employees
- Petition date
- October 10
- Companies named
- ANS Commerce, Cleartrip, Flipkart, Myntra, Shopsy and Super Money
- Earlier appeal
- Eight former C-suite and senior executives urged Walmart’s board to buy their stock options
- Holding period cited
- Some former executives said they had held options for as long as 15 years
- Company IPO position
- Flipkart says an IPO remains part of its strategic roadmap, with timing dependent on readiness
Quotes
Flipkart and Walmart
Flipkart and its parent Walmart, in a joint statement about the company's IPO plans.
“An IPO remains an active part of our strategic roadmap, and we will move forward when the timing is right. By focusing on readiness today, we can ensure that when we are ready to make our public debut, we do so from a position of clear operational and financial strength.”
livemint.com
“We appreciate the perspective of all employees — current and former — and value their feedback. As with anything raised, we take it seriously.”
livemint.com
Sources
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