Flipkart co-founder Binny Bansal sells $76 million worth company shares to Walmart
Almost a year after Walmart acquired 77 per cent stakes Flipkart, Binny Bansal has sold more shares of the Indian e-retail giant to the American retail giant. Binny Bansal who co-founded Flipkart with Sachin Bansal sold his Flipkart shares worth $76.4 million (Rs 531 crore approx) stakes in the company to a Walmart subsidiary.
According to business intelligence platform Paper.vc, Binny has transferred 539,912 of his Flipkart shares to Walmart's Luxembourg based enity -- FIT Holdings SARL. "According to regulatory filings by Flipkart, Bansal transferred 5,39,912 of his shares to Walmart's entity for a cash consideration of $76.4 million," the Chennai based firm said in a statement to IANS.
Following the acquisition of Flipkart last year, Sachin Bansal cashed in all his shares in Flipkart -- $1 billion or Rs 6700 crore approx -- and decided to the leave the company for good. However, Binny stayed on and became the group CEO for Flipkart, which includes companies like Myntra and Jabong. However, he resigned from his position in November 2018 following personal misconduct allegations.
However, he was later exonaterated of his charges following an independent investigation done on behalf of Flipkart and Walmart. Despite being cleared of all charges, Binny decided to leave is position as the Flipkart Group CEO. Responding to the development, Walmart in a press statement had said that while the company's internal investigation did not find anything improper by Binny, however, he was leaving as the entire affair was "distracting".
Following Binny's resignation, Kalyan Krishnamurthy, who joined Flipkart in 2013 as the interim sales and finance head, was appointed as the CEO of the Flipkart group. However, he continued to hold Flipkart shares and a seat in the board.
Notably, this is not the first time that Binny has cashed in shared at Flipkart. Binny's share holdings fell from 74,76,271 to 63,53,838 after Walmart acquired Flipkart last year. "Our assessment is he sold 11,22,433 shares of his for $159 million when Walmart took over Flipkart," the paper said in a statement .
Reports indicate that Binny's shares in Flipkart have now reduced from 3.85 per cent (before the recent sale of shares) to 3.52 per cent.