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Binny Bansal transfers $76-million Flipkart shares to Walmart

FE Bureau
Binny Bansal, Flipkart shares, Walmart, Flipkart Private, FIT Holdings SARL, Tiger Global funds, Acko General Insurance

Flipkart co-founder Binny Bansal has transferred shares worth an estimated $76 million he held in the e-commerce firm to Walmart, according to business signals platform Paper.vc. This is the fourth such transaction by Bansal following the US-based retailer’s acquisition of a controlling stake in Flipkart.

Bansal sold about 539,912 shares in Flipkart Private to FIT Holdings SARL, Walmart’s Luxembourg-based entity that primarily controls its India businesses, documents sourced from the research firm showed. Bansal’s shareholding in Flipkart after this transaction could not be immediately ascertained. The deal took place on November 27, as per the documents. In June, the co-founder had transferred a similar amount of equity shares to the Luxembourg entity for about $76.4 million, reducing his stake in the company to about 3.52%.

In May last year, Walmart announced purchase of a 77% stake in Flipkart in a $16-billion deal, valuing the e-commerce firm at around $21 billion. Bansal had sold 1,122,433 shares for nearly $159 million during the acquisition.

Jayraj Patel, analyst at Paper.vc, said Bansal’s staggered exit was always contemplated in the original acquisition deal. The shareholder agreement executed between the surviving shareholders and Walmart refers to a put agreement between Bansal and Walmart under the head ‘permitted transfers’, indicating the existence of an arrangement for him to dispose of his shares, he added. Earlier this year, Bansal had transferred Flipkart shares worth at least $14 million to two Tiger Global funds-Internet Fund III Pte and Tiger Global Eight Holdings, according to media reports.

In November last year, Bansal stepped down from his position as chairman and group CEO at Flipkart. Of late, Bansal has made investments in companies like insurance tech start-up Acko General Insurance and Mobikon, an analytics platform for restaurants.