Flipkart Approves Second ESOP Liquidity Event, Allows Employees to Cash Out Up to 5% of Vested Stock Options
Flipkart has approved the second phase of its employee stock ownership plan (ESOP) liquidity programme, enabling eligible employees to sell up to 5% of their vested stock options accumulated over the last three years. According to an internal communication from Group CEO Kalyan Krishnamurthy, the approved buyback price has been set at ₹713.4 per stock option. The latest liquidity event is expected to be worth nearly $25 million and forms the second half of the company’s previously announced $50 million ESOP buyback initiative introduced in July last year. Employees who qualify under the programme are expected to receive their payouts in August. In his message to employees, Krishnamurthy noted that the company had initially committed to conducting two liquidity events, with the second contingent on achieving key business milestones. Following a review of the company’s performance, the board approved the second round, citing sustained business growth despite a challenging macroeconomic environment. The overall $50 million ESOP buyback programme is estimated to have benefited more than 7,000 Flipkart employees, providing them with an opportunity to unlock the value of their stock options. Source: Economic Times
