Walmart now holds 81.28 per cent stake in e-commerce marketplace Flipkart. The global retail giant has increased its stake from 77 per cent, it acquired in May, this year.
This a significant 5.55 per cent rise in the stake in the Bengaluru-based firm as Walmart has been trying to increase its ownership post the acquisition.
According to data intelligence platform paper.vc, the updated figure for equity shareholders in Flipkart is: Tencent 5.37 per cent, Tiger Global 4.77 per cent, Binny Bansal 4.2 per cent, Microsoft 1.53 per cent, Accel 1.38 per cent, Iconiq Capital 0.98 per cent, Temasek 0.29 per cent and UBS 0.19 per cent.
At a time of acquisition, Walmart invested $2 billion new equity funding which may have upscaled the equity of Dough McMillon-led global retail giant. The equity infusion may also have increased valuation of Flipkart from existing $20 billion.
Meanwhile, Walmart also tried to bring new investors such as Google, Intel, and Microsoft to pick up small but significant stake in Flipkart. However, there is no update on this front.
Further, the filing indicates that Binny Bansal has been named as the sole founder of Flipkart and he can remain a director as long he satisfies the ‘minimum ownership threshold’. In fact, Binny can hold a board seat until he owns at least 3,532,977 ordinary shares in Flipkart.
Walmart can appoint an independent director at his place when Binny shares plunge to aformentioned number.
The development came after a major upheaval in Flipkart as Binny had to resign as Group CEO and Chairman of the company due to alleged sexual harassment allegation. The question over holding a board seat by Binny on Flipkart is also under media and public lens.